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It's a matter of non-functioning gov't. The tax evasion thing comes at the very end of considerations for me.
First, Greece is overloaded with small businesses related to tourism. They are always going to have a tax evasion problem.
Second, Shipping accounts for 15% of GDP, which makes the tax evasion calculation look worse than it already is.
For example, Greece had 40% of GDP in tax revenue for years. More than enough to pay for necessary services. When you consider that 15% of the GDP was legally untaxed (shipping), that figure should rise even higher.
Then also consider that Greek tax evasion has to be compared to tax evasion elsewhere.
The Greeks have a lot of it, but not so much more that a dent into it is going to change the dynamics of the economy.
Check out this paper here that shows that 14% of the population was responsible for the 28% tax evasion, because the others lived by paycheck (i.e. they were taxed at the source.)
The tax evasion thing comes at the very end of considerations for me.
Really? So what is at the top of your considerations about a better functioning government?
"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet
Seems idiotic to sabotage the small tourism businesses, seems typical how predatory capitalism cannot allow any shoot of success to occur without wanting to squash or own it. what they should do is lower taxes on small businesses to encourage more tourism, instead of throttling their (practically only) rebounding sector, which if managed properly could raise visitor numbers exponentially. Let them get ahead before upping taxes! They may be in debt and need time to get out from under it.
Europe should unite against offering new locations for tycoons to avoid paying taxes in their native country, and should nudge Switzerland, Monaco, et al to comply with this.
If Europe wants to get back its honour in 'practicing economics as if people mattered' it better move fast to install more fairness against its financial industries and those who have been using Gvt funds (and unholy amounts of EU money) as ATMs. These ripoffs should be traced and returned to the treasury stat, perps prosecuted.
Actions this radical would go a long way towards soothing the predators creditors' fears and counter the propaganda in the German gutter press, (who should be also sanctioned for shitstirring at such an critical and inflammatory moment in European history).
Another incidence (like the Hebdo and Danish cartoons) where an absolute fetishisation of free speech has been tantamount to tossing a lit cigarette out of a car window into forest tinder in a drought.
'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
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