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Uncontrolled Taxation Shocks Greeks – The New Austerity Measures

The new and additional austerity measures, the new uncontrolled taxation of low incomes, are here and they have been given to the stunned Greeks via a written statement. I guess, no government minister dared a televised announcement fearing that the television screens would be covered with yogurt – and who can spare even a drop of spray to clean the screens for such an odious reason.

The measures put the knife deep into pensions, that is in  money that employees and self-employed have paid contributions for. Those earning even 360 euro per month will be taxed. At the same time, the hydrocephalus public sector will remain draining our blood.

So here you are, my country fellowmen and -women and foreigners living, working, paying taxes or having property in Greece:

-30,000 civil servants even from broader public sector will go into “labour reserve” until the end of 2011. 6,000-7,000 of them will be fired after one year. Semi-officially the civil servants are 900,000 people.

-Cut of -20% to pensions over €1,200.

-Pensioners under 55 years old, will have cut of -40% for the part of pension over €1,000. Pensions will be cut as of November 1st 2011.

-Lowest tax-free yearly income is €5,000. (The statement said that that was the average in the eurozone. But it did not said what are the average wagges and the social state….) For two months the tax-free income was lowered from €12,000 to €8,000.

-Property levy will be collected until 2014.

– Heating Oil tax hike as of  October 2012! (Unless…)

The Greek government grabbed again the old but so far failed method of cutting income of employees and pensioners, even of low income. Any monthly income of over 360 euro will be taxed! However it’s not yet known how much. Once again they will have to change the taxation system.

I heard on private television network ALTER tonight, that the Greek state has 70 billion euro expenses per year. That is, 7 billion is spent for operating expenses and the rest for salaries, pensions and benefits. “Benefits” are not to be understood as ‘social benefits’ only, as civil servants income consists of salary+several benefits. Pensions are been paid by the state budget as the paid contributions by people have … disappeared from the pension funds.

Again, we see no measure to capture big scale  tax evaders.

Later, appearing on a private TV programme, government spokesman appealed to public to accept the measures “because of all this pressure and the scenarios against Greece”. Nice blackmail, we hear it every two months….

A nice counterweight would be to reduce prices for essential goods and utilities. Just Kidding….

PS. Has anyone seen our Prime Minister, by the way? Last time he was seen on Sept 10, 2011 at the International Fair of Thessaloniki.

 

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