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On tax evasion, again… December 8, 2011

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis.
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This is a popular theme of us. The reason is that strict fiscal austerity, which is of course needed, cannot by itself lead to fiscal recovery and creditworthiness for Greece. Any government needs revenue from the widest possible tax base. Well, for the first time to the best of my knowledge, a Greek private bank comes out so forcefully on ending tax corruption and having fiscal and tax justice. Although I cannot upload the document you can find it here (see the weekly of Dec. 7th, its in Greek) and below is two excerpts which I translated:

“The trust on the prospects of fiscal adjustment and, in the end, exiting the crisis will not going to be improved without progress on the tax evation front and revamping of the tax collection system of the economy” (p. 1)

“The exit from the painful fiscal crisis in which there is Greece today is not possible without a significant expansion (and not contraction, as it happened in 2010 and 2011) of the tax bas so as to included th total of taxable income, business and personal, especially the that from non-wage earners” (p. 1)

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Comments»

1. Constantina Kottaridi - December 9, 2011

Well! How long does it take to someone to tell the mere truth??? Keeping on taxing the same people does not do any good, it merely dries up the market because it is these people that spend money in the greek market. The others, the ones who evate, they just take their money abroad and in any case they do not spend it here!!!

I have heard ance or twice the last days talking about tax evasion as the primary goal – if it takes 2 years to understand the problem, well, there is no hope! Or has it been clearly understood from the very beginning but, for some purposes, we just pretended we didn;t???


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