Over-Taxation Greece

A Hellenic Federation of Enterprises report says the middle class faced unprecedented over-taxation based on economic aims but political motives.

Over-taxation was a conscious choice of the government, which aimed to collect funds for electoral handouts at the end of its term.

It is impossible to reverse four years of government policy in the 20 days left until the municipal, prefectural, and European Parliament elections.

Tsakalotos maintained that the government aims to tax the haves more than the have-nots who have borne the brunt of the crisis.

Finance Minister Euclid Tsakalotos and Alternate Finance Minister Yorgos Houliarakis have conceded that over-taxation of the middle class was carried out by design.

The government has shaped an artificial reality in order to boast of its achievement even as the economy totters.

According to the OECD, Greece and Hungary are the two European countries in which 70 percent of middle class households cannot afford unexpected expenses.

With over four million citizens – professionals and businessmen – with delinquent debts, one can easily surmise the dire straits in which a large swathe of Greek society finds itself.

Interviewees also indicated that they harbour few hopes that things will improve under a government led by New Democracy, which maintains a double-digit lead over SYRIZA in most polls.

Greece is the heaviest taxed country as regards goods and services – VAT and the EFK special consumer tax – and is near the top of the list in terms of income tax.