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by kartan 2528 days ago
Bulgaria underground economy was the highest of the EU27. Is it possible that low/high taxes has no correlation with tax evasion?

A good tax office, effective laws and public awareness seems more important than how high or low are taxes.

I only found data from 2012: http://jalac.kyxar.fr/ANG/ECONOIR11.html
2 comments
ChuckNorris89 2528 days ago
IMO the statistics in your link are severely wrong and don't reflect the real-world situation.

I live in Austria and the underground economy here is way WAY bigger than 8.2%.

Most small restaurants/bars/cafes here are cash only and rarely(never) hand out receipts. Also, tips are a large source of income for workers in the service industry and many are paid under the table.

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gruez 2528 days ago
>I live in Austria [...]

>Also, tips are a large source of income for workers in the service industry and many are paid under the table.

I thought tip culture isn't really a thing in Europe?

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phs318u 2527 days ago
When baristas are paid as little as €3/hr (post-crisis Greece), tips are a survival requisite.
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drcross 2528 days ago
Generally you tip 10-15% for a proper sit down meal, that's all.
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danielscrubs 2527 days ago
Generally it differs from country to country, it’s intellectually lazy to say these things about Europe/Americans/Africa.
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StavrosK 2527 days ago
In Greece, you tip 1 or 2 euros. Maybe 5 if the bill is over 100 euros or something like that.
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dmix 2528 days ago
How could tax evasion not be correlated to the rate?

It’s expensive to hide tax money, especially when you can’t use it for investments.

The higher the rates the more it’s worth the risk and difficult work it takes to hide it from the gov. Which typically involves two or three parties (the person paying you without the paper trail, you trying to hide it, and the bank or organization where you plan to hide it in).

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kartan 2527 days ago
> How could tax evasion not be correlated to the rate?

To make such a statement you need data. I can argue for the opposite to be true and an inverse relationship exists. Look for countries with very low taxes (like South Africa) and the to ones with high taxes (like Sweden). You will see that lower taxes correlate with higher evasion.

My data is not very rigorous. That is why I think that i requires further work to get to a conclusion. Can you present data that justifies your point?

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