Tax burden in Greece: Poorer pay 337 percent more, richer 9 percent

Tax burden in Greece: Poorer pay 337 percent more, richer 9 percent

19 March 2015

The harsh austerity measures in Greece exacerbated poverty in the bankrupt threatened EU country, a new study shows. The nominal gross income households were dropped from 2008 to 2012 by almost a quarter, according to a study by Greek scientists on behalf of the union-friendly Hans Böckler Foundation. Accordingly, wage cuts are responsible for almost half of the decline.

Especially hard it according to the study made Greeks low- and middle-income. In the lower half of the income tax burden increased during the crisis by a whopping 337 percent. In the upper half, however, she took to only 9 percent.
In absolute amounts euros, the tax claims on many poorer households had only increased by a few hundred euros. Faced with dwindling income and high unemployment already overburdened these amounts but many.

The cuts had turned out far more comprehensive than would have been necessary to strengthen the international competitiveness of the Greek economy, the study authors write. They criticize addition, the loss of wages for employees in the core public service had turned out far less than employees in the private sector. In many cases, were initially decreed cuts for civil servants or directly from state employees have not been implemented or were withdrawn after a short time, partly on the basis of court decisions.

Overall, 2012 was almost one in three Greek budget have to make do with an annual income of less than 7000 euros, they say. The poorest households have lost nearly 86 percent of income, most only 17 to 20 percent.

Gross income is calculated from the total income of all household members before taxes and social security contributions. For the study, researchers analyzed data from 260,000 Greek households.
“Show the hard numbers, like millions of people have crashed economically by over hard and socially completely unbalanced austerity in Greece,” said Gustav Horn, scientific director of the Institute for Macroeconomic Research (IMK) at the launch of the study in Berlin on Thursday. Economically, those sacrifices did not make sense, so horn, because they have the potential demand is so reduced that the Greek economy will still need a long time to get back on a reasonably stable development path.

The euro partners throw Greece claims to have lived for decades beyond its means, the benefits are sometimes higher than in other European and EU countries.

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