What if all economic analyses point to devastating effects that high tax rates have on the Greek economy? In bankrupt Greece, raising ever higher taxes on all types of economic activity seems to be the only way Greek authorities know of how to satisfy the need for the repayment of loans made by the country’s official lenders.
Little wonder then that the second meeting of the government’s task force for fiscal affairs proposed again new tax hikes.
Specifically, Greek taxpayers are expected in the next three years to cough up an additional 800 million in new taxes. The new taxes come in the form of hefty rate hikes for owners who rent homes and apartments (for annual incomes up to 12,000 euros the tax rate is increased to 13% from the current 11%, and for annual incomes above 12,000 euros the tax rate is increased to 35% from the present 33%).
The second leg of the new tax increases will come from the government’s decision to tax with an even higher rate, annual incomes above 30,00 euros, although reports indicate that the higher tax rates may affect even annual incomes of above 22,000 euros.
The government also proposes to raise the rate of the special solidarity tax to 10% from the current 8%.
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