It is indeed telling that in 2015 (2014 incomes) 1.2
million taxpayers in Greece declared zero
incomes, and 4.6 million taxpayers declared
incomes of up to 10,000 euros, paying taxes of
139 euros per person and contributing only 7.5%
of personal income tax.
At the same time, 267 thousand taxpayers with
annual declared incomes of more than 30,000
euros paid an average tax of 13,790 euros each,
cumulatively paying 42% of the personal income
tax and solidarity contributions collected by the
state.
According to SEV analysts, during the crisis
(2009-2014) the average Greek household lost 4
percentage points of its income (which fell by 30%
because of the recession) as a result of the
increase in income, wealth etc. taxes and social
security contributions. This loss is many times
higher that the loss sustained by households in
other European countries. As a matter of fact, we
are witnessing the paradox that, although tax and
social security contribution rates are among the
highest in Europe, the average tax burden
remains one of the lowest in Europe, indicating
the extent of tax evasion.
Therefore, warns SEV, tax increases will also drive
other productive parts of the middle class to either
the grey economy or to emigration. “When the
average citizen is discouraged in his effort to find a
better job, it is the middle class that’s losing in the
end”, says the Federation. The consequent col-
lapse of social cohesion leads to economic stag-
nation and gradually to political radicalism, which in
turn further undermines the well-being of the many.
Above all, though, the impoverishment of the soci-
ety leads to the disappearance of resources that, in
a thriving society with a strong, economically and
politically, middle class, could finance an effective
welfare state and meaningful income support poli-
cies for the most vulnerable citizens.
Trade with Greece
27
