"The government should increase tax on alcohol in line with income gradually in order to redress the balance, " he said.

BBC: Life with a 12-year-old alcoholic

With such a reform, the state can limit the expansion of required pension contributions and find some money to spend on actual government services, or even roll back a part of the massive income tax increase that the state enacted in 2011.

FORBES: Pat Quinn's Illinois Budget: Spending Up, Program Spending Down

By raising consumption taxes on products and services targeting the affluent while reducing or maintaining income tax levels, the Chinese government has been able to sustain consumer confidence, increase spending (retail sales have risen 16-18% annually over the last three years), and get needed tax revenue for infrastructure projects required to maintain employment numbers.

FORBES: What Obama Needs to Learn From China About Taxes