Economics is a balancing act and if the public sector refuses to keep a balanced model, then businesses may move or close resulting in less tax revenue for the state. It's not that some are greedy, but there is a point that taxes and the regulations imposed become destructive.
A government may be able to run in the red, but a private business has to maintain real budgets to provide the products and services at reasonable prices to it's customers while paying it's employees a salary. Governments that overtax or over-regulate cannot move as fast as market indicators. Overtaxing is envy and greed from the public sector; do they want that tax revenue or do they want to destroy the engine that funds their endeavors?
Common sense dictates a weighted balance.