The declared incomes and the taxes paid by taxpayers present a roughly stable picture over time. Despite the fact that we have been through an economic crisis, a pandemic and recently an energy crisis, the same taxpayers are paying for them taxesincomes remain low for a large part of the population, while the tax evasion rages
The IOVE proceeded to an analysis of incomes for the years 2012 and 2021. In 2012 the measures that had been taken had not been felt, which was done later, while in 2021 we were in the middle of the pandemic with income declaration, closed shops, suspension of contracts for employees, etc. etc. At the same time, earlier in 2020 the new tax scale was implemented by the government of the Republic of Greece. which led to the reduction of tax burdens mainly for the low incomes but also them professionals.
According to the data studied by IOBE, the 20% of taxpayers in the lowest income brackets declared 1.4% of total income in 2012, while in 2021, in the midst of a pandemic, the percentage was limited to 0.2% of total income. Conversely, the top 20% of taxpayers reported 58.7% of total income in 2021, up from 52.6% in 2012.
The picture in taxes paid is similar, with 60% of the population paying just 4.3% of total income taxes, while the top 20% of taxpayers in the upper income brackets pay 81% of total taxes.
IOBE’s study of incomes for the years 2012 and 2021 shows extensive tax evasion and an unequal tax structure.
But this image more or less remains the same. And perhaps the figures to be declared this year will be more representative, as 7 out of 10 professionals over time declare incomes below 10,000 euros, which in many cases demonstrates a large tax evasion. At the same time, all the interventions that have been made in income taxation aim to limit the burdens on those who declare low incomes, placing a very large part of the population within the tax-free threshold. Conversely, high earners continue to pay disproportionate taxes.
However, according to IOBE analysts, 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, on the basis of the declared incomes to the tax authorities n income inequality, obtained by comparing the distribution of shares of total income, was exacerbated despite the current system of progressive taxation. Despite its small decrease progressiveness of total income taxation over the past decade has seen a systematically increased level of progressivity, with citizens with the highest reported incomes bearing a disproportionately high share of total taxes.
Finally, the analysts note that there was a decrease in total declared (real) income from 2012 to 2021 by 7.2%, confirming that the impact of the economic crisis on citizens’ incomes was significant. They also note that, based on reported income data, a large percentage of the population is on the edge of povertywhich 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.
