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Report: Greeks Dodge Tens of Billions in Taxes

In 2009, approximately €28 billion in taxes went unreported in Greece, according to a new report from economists Nikolaos Artavanis, Adair Morse, and Margarita Tsoutsoura.

The Greeks have been dodging taxes! Stop the presses!

Yeah, yeah, we know: Tax evasion in Greece is nothing new. For instance, as the Wall Street Journal’s Justin Lahart notes, when tax collectors set out to compare swimming-pool ownership with incomes, Greece’s top earners actually camouflaged their pools.

Therefore, another story on Greek tax evasion doesn’t seem all that “newsy,” does it? Not really. But what is noteworthy is the amount of cash that has gone unreported. You see, because hidden income is, well, hidden, the Greek government has no idea how much Greek earners have been hiding from the taxman, which means there are no official figures.

So, in order to figure out how much the Greeks have avoided reporting, Artavanis, Morse, and Tsoutsoura turned to one of Greece’s ten largest banks.

“The banks, with tens of thousands of customers across the country, provided loan and credit-card application and performance data,” LaHart writes.

“That not only gave the economists access to self-reported incomes, but also allowed them to infer the banks’ estimates of true incomes — which are likely closer to the mark,” he adds.

What did the economists find?

After crunching the bank-provided numbers, the economists estimated that in 2009 some “€28 billion in income went unreported.”

You know what that means, right?

“Taxed at 40%, that equates to €11.2 billion – nearly a third of Greece’s budget deficit,” LaHart writes.

With all of its financial woes, you’d think Greek leaders would try a little harder to collect tax revenues, right? So what’s the deal?

“The economists were also able to identify the top tax-evading occupations — doctors and engineers ranked highest — and found they were heavily represented in Parliament,” LaHart reports.

So that’s it? It’s as simple as cronyism? Report: Greeks Dodge Tens of Billions in TaxesThis is what’s going on in the graph [via WSJ]:

Depicted is the zip code-plotting of tax evasion. The authors of the study pool all individuals in a zip code covered in all samples (over all the years covered by each sample) and plot the average zip code percent of estimate true income evaded. Darker colors denote more tax evasion. The circled area (specifically, the dark area in the middle of the circle) is Larissa, an area targeted by news reports that has the largest number of Porsche Cayennes in Europe.

(H/T: Times 24/7)

Comments (46)

  • libsaredangerous
    Posted on July 13, 2012 at 2:57pm

    and these people are going to buy their way in to the US and will get on the welfare train we have going here. It’s not hard. You can just buy a Hawaii birth certificate and boom–you’re golden.This is where we are headed–but hate to say it, Obama is trying his best to make sure all Blacks are set for life without having to work at all. It’s owed to them. That‘s what’s going on. If they can’t get cushy government jobs, then don’t worry–you’ll be taken care of. We have our own greece here–just keep them socialists in Europe.

    Report Post » libsaredangerous  
  • turkey13
    Posted on July 10, 2012 at 5:35pm

    They learned from us! Remember when Obama was selecting his zsars and 6 had to decline because of not paying their taxes. This was in addation of Timmy Geither who was the only man that could save the USA and he just got a defective CD of Turbo Tax so you really can’t count him. And then while Nancy Policie was draining the swamp she discovered Charlie Rangel who wrote the tax code but didn’t understand that when you own rental property in foreign countries you have pay tax on the rential income and if you own condos in DC you have to p[ay taxes on that rental income..

    Report Post »  
  • The_Cabrito_Goat
    Posted on July 10, 2012 at 2:05pm

    If you‘ve read Glenn’s book “Broke”, in the spanish empire (when they used to be an empire) guess what the biggest industry was? Smuggling. To avoid taxes and tarrifs.

    Report Post » The_Cabrito_Goat  
  • Searchingforthelight
    Posted on July 9, 2012 at 10:17pm

    What shocks me is that
    Greece is on fire and we owe way more than they do!!!!
    At least they’ve looked at the problem and can visually recoup one third of it.
    Look at our problem, he can’t give it away fast enough.
    Think of all the actual good that could have come from the trillions that have been spent.
    Once we shored ourselves up we could have assisted many more disasters and struggling countries. We could be shipping our Nations Overstocked Food Supply to other countries.
    As did the Great Pharaoh during the seven years of famine.

    Report Post »  
    • plastixman
      Posted on July 10, 2012 at 12:19pm

      Greece will never rebound from this because its politicians AND citizens are corrupt. They are one step away from being a 3rd world country.

      Report Post » plastixman  
    • turkey13
      Posted on July 10, 2012 at 5:25pm

      Didn’t you get the memo that all surplus grains and crops are to be turned into ethynol gas. We are the only country that is driveing around on our food. My sons have 1200 acres. They lwase the pasture for $12,000.00 a year. Hunting is leased for $10,000.00 a year. They get paid not to produce crops on the farm land under CRP or as farmers call it CRAP. They also are getting paid to bulldose and clear the trees off – some of the walnut trees must be at leat 200 years old as big as they are. Two years ago my sons didn’t even break even. Since Obama came into office and promoted green all grains have doubeled or tripeled in price. Youv’e got to pay big bucks for seeds.They are making all this money for doing nothing except bulldozing trees and they already owned a D-8 Cat and have a Komoto excavitor for their construction company.

      Report Post »  
  • flyingeagle
    Posted on July 9, 2012 at 8:47pm

    1a2b3c4d

    Report Post »  
    • TSUNAMI-22
      Posted on July 9, 2012 at 10:01pm

      It’s more like this:

      1 – code 1 – 1a
      2 – code 1 – 1a – 2b
      3 – code 1b – 2b – 3
      000 – destruct – 0

      Oh, they said “Greeks”. I thought they said “geeks”. Never mind ;)

      Trivial Pursuit, anyone?

      Report Post »  
  • The Gooch
    Posted on July 9, 2012 at 8:10pm

    Beware of Greeks. Period.
    This country knows no shame and should not be enabled by any other entity. They made their mess; let them wallow in it.

    Report Post »  
    • lel2007
      Posted on July 9, 2012 at 8:39pm

      Shame? You must mean evasion of paying their FAIR share in a socialist society where “from each according to their ability, to each according to their need” is the rule of the day. ….. when taxes are too high and UNFAIR the natural reaction is to evade them. I do the same thing every chance I get.

      Report Post » lel2007  
    • lel2007
      Posted on July 9, 2012 at 8:44pm

      There are more “have nots” than there are “have much”, yet one person has one vote. Democracy is a licence to steal from the rich few, it is mob rule.

      Report Post » lel2007  
    • The Gooch
      Posted on July 10, 2012 at 7:59am

      What’s pathetic is all the lip service paid to how great such a system is… yet no one wants to pay for it. Funny how human nature trumps ideology every time.

      Report Post »  
  • Mr Sanders
    Posted on July 9, 2012 at 7:46pm

    I wonder – do they have an IRS of sorts there in Greece? I‘d look it up but don’t want to go running through someone else’s laundry right now.

    I’d say they run-to-ground their own tax cheats [Sec-T Geitner] before they come running for cash from EU, via IMF, via US.

    Report Post » Mr Sanders  
  • JUSTANOTHEROPINION
    Posted on July 9, 2012 at 7:31pm

    Ok, and so what.

    Report Post »  
  • Dougral Supports Israel
    Posted on July 9, 2012 at 7:04pm

    About 30 years ago I read an article about taxation. The conclusion was that governments cannot collect more than about 50% of someone’s income because as that number is approached tax cheating becomes rampant. Italy was used as the example. I can see that it is likely that the same mechanism is in play in Greece. The ironic thing is that people demand unlimited services from their government, then refuse to pay the bill for it.

    Report Post »  
    • Marine25
      Posted on July 9, 2012 at 7:44pm

      You said…The ironic thing is that people demand unlimited services from their government, then refuse to pay the bill for it.

      –Does that include the wealthiest Americans demanding the Bush tax cuts be made permanent while sporting “support our troops” magnets on their BMW? Many of us provided a service to our country that the recipients of that tax-cut are refuse to pay the bill for. In 2002 we became the first civilization in history to go to war and reduce taxes at the same time. Perhaps now we know why nobody else ever tried such a stunt. So before you jump all over people demanding unlimited services without paying for them, consider the fact that you are one of them.

      Report Post »  
    • lel2007
      Posted on July 9, 2012 at 8:56pm

      Obviously it’s not the rich demanding services from government, just as it’s not the rich demanding free abortions here in America. It is those shameless masses who feel entitled to someone Else‘s property and who’s vote is equal to that of the rich few.

      Report Post » lel2007  
    • Lloyd Drako
      Posted on July 10, 2012 at 12:51pm

      Marine25: Seconded, except that you won’t see many “Support our Troops” stickers on BMWs. It’s just too . . . tasteless, to spoil a great car with tacky stuff like that.

      Report Post » Lloyd Drako  
  • Green is a Lie
    Posted on July 9, 2012 at 6:36pm

    Flat tax or consumption tax solves all problems and eliminates the gestapo and inflated government programs that survive on the overtaxation of all humans. It is incomprehensible that our human race has allowed such a gross miscarriage of government and taxation to sprawl out of control. Demand REPEAL of all laws in the US that dilute the constitution. Fortunately, Greece civilians still have their arms to protect against the red coats coming to assess more taxes based on a bank application. Again, why do you use a bank?

    Report Post »  
    • encinom
      Posted on July 9, 2012 at 6:56pm

      Flat taxes and especially consumption taxes unduly burden the poor who will pay a larger percentage of their income to taxes than the rich.

      Report Post »  
    • guntotinsquaw
      Posted on July 9, 2012 at 7:03pm

      Encinom…the poor ride the bus or a moped, the rich are buying Porsche Cayennes. Who is being hit with the tax?

      Report Post » guntotinsquaw  
    • encinom
      Posted on July 9, 2012 at 7:19pm

      @guntotinsquaw

      The luxary purchase represents a much smaller percentage of ones income and wealth, than the necessities that the poor purchase. When you live pay check to pay check, nearly 100% of the income earned will be taxed as every dollar goes to the basics.

      Report Post »  
    • TSUNAMI-22
      Posted on July 9, 2012 at 7:23pm

      @ encinom

      Flat taxes and especially consumption taxes unduly burden the poor who will pay a larger percentage of their income to taxes than the rich.
      ~~~~~~~~~~~~~~~~~~~
      You’re just so painfully DUMB.

      Polly want a *******?

      Report Post »  
    • Marine25
      Posted on July 9, 2012 at 7:33pm

      Encinom is right. It is basic economics. Flat taxes sound great until you pass ninth-grade math, then the idea comes apart at the seams.

      “Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed.”
      –Herman Melville
      (that quote comes to mind often when visiting this site)

      Report Post »  
    • lel2007
      Posted on July 9, 2012 at 9:04pm

      So tough if the poor pay a greater percentage,maybe the “law makers”should consider this when they pass laws to steal other peoples property. The rich require no more fire or police protection than the poor; they cause no more road damage than any one else. ENOUGH of this “from each according to their ability (to PAY; To each according to their need” BS. The poor will always be among us; there will always be someone with more than another. Unfair? Tough ****

      Report Post » lel2007  
    • TSUNAMI-22
      Posted on July 9, 2012 at 10:03pm

      @ Marine25

      “The poor will always be among us”

      Who’s quote is that?

      Report Post »  
  • bob111
    Posted on July 9, 2012 at 6:10pm

    Let the Greek economy float!
    Hopefully, they will stay above sea level.

    Report Post »  
    • chips1
      Posted on July 9, 2012 at 7:26pm

      Why? I heard that you should never trust a Greek wearing tennis shoes.

      Report Post »  
    • Detroit paperboy
      Posted on July 9, 2012 at 8:44pm

      ENCICONN….. i no longer give a ratsass about the so called poor….. Its a chouce, a way of life, a free ride, and remember, its all relative our poor are another nations wealthy…… Cars, flatscreens, air conditioning, foodstamps, welfare checks, medicaid, housing, free cell phones and internet…. Air Jordens, and drink 40 ouncers and sell crack all day !!!!!!!! And pay ZERO TAXES !!!!!!!! WOWW I CANT WAIT TO HEAR WHAT MORE WE OWE THESE POOR VULNERABLE LAZY CRACKHEADS…… or as Micheal Berry says “ the VULNABALLZ ”

      Report Post »  
  • lukerw
    Posted on July 9, 2012 at 6:06pm

    Wollen Sie mich fur die Rettung der Griechen?

    Report Post » lukerw  
  • JohnLarson
    Posted on July 9, 2012 at 6:00pm

    The Greeks dodge their taxes?

    I didn’t know Romney was Greek…

    Report Post »  
    • barber2
      Posted on July 9, 2012 at 6:22pm

      They are “dodging” their way to prosperity. A new version of the international / Obama “ spending our way to prosperity ” routine ! Duh.

      Report Post »  
    • AvengerK
      Posted on July 9, 2012 at 6:33pm

      Very good Johnny..and of course you can prove Romney is dodging taxes right? (sound of crickets chirping).

      Report Post »  
    • barber2
      Posted on July 9, 2012 at 6:42pm

      AVE: Johnny is just following the Lefty Big Lie tactic: tell a lie but get it in the media. Repeat it in the media. And voila : some fools substitute repetition for truth ! Goebbels used this propaganda tactic quite well. Lefty Media Matters . Soros knows where to stuff his bucks.

      Report Post »  
    • JohnLarson
      Posted on July 9, 2012 at 6:56pm

      Romney‘s dad didn’t try to hide his money offshore to avoid taxes, but Mitt has a Swiss bank account, Cayman islands, Bermuda..etc..

      If you’re a tax dodge… you don’t run for President..

       
    • encinom
      Posted on July 9, 2012 at 7:01pm

      Romney’s Father released 12 years of tax returns, Mitt releases one and the progressive paper the Wall Street Journal is questioning Romney’s refusal to release the details of his Swiss and Caymen island accounts. Mitts is hiding the fact that he has avoided paying his fair share of taxes as he seeks to cut much need services the Middle class and Poor need in this economic climate.

      Report Post »  
    • JediKnight
      Posted on July 9, 2012 at 8:10pm

      Nothing illegal about what Mitt has done (or what you’re guessing he has done). And every single one of you complaining about him takes all the exemptions and deductions you can get. I guess none of you are paying your fair share either.

      Report Post »  
    • lel2007
      Posted on July 9, 2012 at 10:30pm

      “If you’re a tax dodge… you don’t run for President.”
      What if you’re a non-citizen, never had a real job, got special access to the finest schools by someone elses money and influence, hated the constitution and had a burning desire to “transform” America into an obamanation – should he run for president?

      Report Post » lel2007  
  • MeteoricLimbo
    Posted on July 9, 2012 at 5:42pm

    Isn’t it funny how socialism always drives business underground to avoid taxes…

    Report Post » MeteoricLimbo  
  • Sy Kosys
    Posted on July 9, 2012 at 5:39pm

    Those damned 1% ers!

    Occupy Greece!!!

    “Fair Share” and all that

    lmao

    Report Post » Sy Kosys  
  • Joss
    Posted on July 9, 2012 at 5:39pm

    Read Michael Lewis’ “Boomerang”. Clarity will ensue.

    Report Post »  
  • shorelineliz
    Posted on July 9, 2012 at 5:38pm

    Oh Brother! Where art thou? Are you saying that if the Greeks just paid 40% of their untaxed income of 28 billion that this money, 11 billion would pay off 33$ of their budget deficit? And, that the largest earners and tax evaders are doctors and engineers? And that the largest concentration of Porsche Cayennes are in Greece? They obviously love to keep what they earn and live well. However, the borrowing from the European Union has really screwed them up. They should have never joined. I wish they would leave the European Union and forge their own destiny but it appears the borrowing has sunk and sunk them. What did they do before the European union? How did they survive?

    Report Post »  
  • kaydeebeau
    Posted on July 9, 2012 at 5:35pm

    Paragraphs?

    Report Post » kaydeebeau  

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