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by brianwawok 4163 days ago
Here is something that maybe I am not understanding.. but saying that 6/10 greeks pay no income tax does not tell us how much tax evasion there is, right?

From what I can google: http://www.taxpolicycenter.org/taxtopics/federal-taxes-house...

43% of Americans do not pay federal income tax (and some % of those get a net gain of federal income tax). Sure 60% is > 40%... but that could be due to a ratio of more people really poor, compared to more tax evasion.

(Not doubting Greece has a tax evasion problem, but 6/10 not paying taxes seems bad evidence).

2 comments

saying that 6/10 greeks pay no income tax does not tell us how much tax evasion there is, right?

You're right, the 6 in 10 figure seems rather misleading. Those people shouldn't be characterized as tax evaders as I suggested. That said, it probably points to an issue of not enough tax contributors.

The numbers for America are interesting, I wouldn't have guessed the rates were that high.

Anyway, as far as tax evasion goes, I wonder how much a lack of enforcement allows well compensated workers to get away with claiming they're below the tax exempt mark.

I mean that is the trick right? You have a doctor making 100k claiming he makes 10k and paying no tax. I have seen individual stories of it, but is that really the common case? Or is it more like rich business owner making 300k claims he made 200k because of the cash heavy economy in Greece?
And how many rich people pay their fair share of taxes in the US?

I think the issue is deeper than just not paying taxes. But that's just me.