Thursday, November 3, 2011

Greece fun facts

As we all know by now, Greece is a mess. Statistics like this one help explain why.
There are more Porsche Cayennes registered in Greece than taxpayers declaring an income of 50,000 euros (£43,800) or more, according to research by Professor Herakles Polemarchakis, former head of the Greek prime minister’s economic department.
While German car workers may take pride in this evidence of their export success, German taxpayers may be less keen to bail out a nation whose population appears to take such a cavalier approach to paying its fiscal dues. Never mind all that macroeconomic talk about deficit distress, many Greeks are still plainly riding high on the hog.
So, by definition, either the Greeks are overextending their budgets to an insane degree or else they're just massively understating their incomes for tax purposes. Realistically, it's a mix of the two explanations, but mostly it's the latter--it's long been clear that tax evasion is simply a way of life over in Greece, as this old post noted. I'm pretty sure it's just a matter of time before taxpayers in Germany, France, Italy, and elsewhere decide that they don't particularly feel like subsidizing Greek purchases of Porsches.


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