Great concern in an environment of generalized accuracy is caused by the figures of IOBE in relation to the poverty that prevails in Greece, as a consequence of the crisis of the memorandums. It is characteristic that a special analysis entitled “progressivity in the taxation of declared income in Greece, 2012-2021”, included in his report on the Greek economy, shows that inequalities have widened. But not only that. Another important fact is that in an economic “pie”, which has shrunk, the poorest receive even less, in contrast to the richest who have increased their incomes. As the Institute records, a large part of the population was on the poverty line in the decade 2012-2021, which is reflected in the tax contribution of citizens.
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According to the relevant analysis, the bottom 40% of the population paid 1.63% of total taxes, being in the two lowest income quintiles, defined by incomes up to 6,098 euros. It is worth noting that the poverty threshold, according to ELSTAT’s categorization for 2021, amounted to 5,712 euros per year for a one-person household and 11,995 euros for households with two adults and two dependent children under the age of 14.
At the same time, the poor became even poorer and the rich even richer. Increased levels of income inequality are observed compared to 2012, since the bottom 20% received just 0.2% of total income (compared to 1.4% in 2012) while the top 20% received 58.7% of total income (compared to of 52.6% in 2012) of Greece. In essence, the richest part of the population increase their incomes in the midst of crisis, in contrast to the poorest part.
ELSTAT: Faced with poverty 2,658,400 citizens in Greece
Decrease in income
From there on, IOBE, making use of the publicly available data of the Independent Public Revenue Authority (AADE) on the incomes and taxation of natural persons and comparing the year with the most available data (2021) with the oldest available data (2012) , reports that reported incomes (actual incomes from all sources) in 2021 compared to 2012 were 7.2% lower. Also, by dividing the population into quintiles, for 2021, 20% are included in the lowest income quintile, which includes those with incomes up to 1,016 euros. The top 20% includes those with an income of 19,312 euros and above.
In addition, using Eurostat’s price index to be able to compare the incomes of different years with each other (the price level was slightly lower in 2021 than in 2012), the study observes that the effect of the financial crisis on the incomes of citizens was important. 
“We also notice that, based on the data of incomes declared to the tax authorities, a large percentage of the population is at the poverty line, which according to ELSTAT’s categorization for 2021, amounted to €5,712 per year for a one-person household and in €11,995 for households with two adults and two dependent children under the age of 14.”
Presenting, in fact, the total declared income per quintile and the corresponding total tax burden, for 2012 it states that based on the declared incomes, high levels of income inequality are observed, since the bottom 20% received only 1.4% of the total income, while the top 20% 52.6% of the total income of Greece.
High on inequalities
According to IOBE, the Gini inequality index estimated by the World Bank ranks Greece 57th worldwide for 2021. Given that the tax system in Greece is progressive (ie tax rates increase as income increases) it is not surprising that the fact that the total tax burden is increasing, partially smoothing out inequality, the Institute emphasizes.
According to IOBE, also, the degree of progressivity based on assessed taxes is remarkable, since the bottom 40% of the population paid 1.63% of total taxes, while the top 20% paid 76.84% of total taxes.
The richest “raised” their incomes
Also, “Increased levels of income inequality are observed compared to 2012, since the bottom 20% received only 0.2% of the total income (compared to 1.4% in 2012) while the top 20% took 58.7% of the total of income (compared to 52.6% in 2012) of Greece” states the IOBE study and adds: “There is a corresponding increase in the taxes payable, with 60% of the population paying just 4.3% of total income taxes, while 20 % of the population pays 81% of total taxes. In conclusion, the economic crisis that the country went through had a negative and significant impact on citizens’ incomes and the impact has not yet been overcome.” 
In addition, based on declared incomes to the tax authorities, income inequality, which is obtained by comparing the distribution of shares of total income, has worsened despite the current progressive taxation system, the IOBE study says. In fact, despite a slight decrease in the progressivity of total income taxation over the last decade, as the report states, there is a systematically increased level of progressivity, with citizens with the highest declared incomes bearing a disproportionately high share of total taxes.
In conclusion, IOBE estimates that the economic crisis that the country went through had a negative and significant effect on the incomes of the citizens and the effect has not yet been overcome. Moreover, on the basis of declared incomes to the tax authorities, income inequality, which is obtained by comparing the distribution of shares of total income, has been exacerbated despite the progressive taxation system in place. Despite a small decline in total income tax progressivity over the past decade, there is a systematically increased level of progressivity, with citizens with the highest reported incomes bearing a disproportionately high share of total taxes.
