Greece seeks to implement Ireland’s corporate flat tax model

Greece is looking towards the Irish corporate flat tax model. However the vision of Greek prime minister is not the Irish flat tax of 12.5% but its Greek version of 15%. This revolution of Greek taxation system could only take place after the public deficit falls further. This could be in a couple of months, years, decades. No worries, though. Nobody speaks of ‘centuries’. Prime minister Antonis Samaras revealed his Irish-oriented flat-tax vision on Thursday during a meeting with his Irish counterpart Enda Kenny.

“It has been my stated aim for years now that I want a unified rate, a flat-rate tax of 15 percent. As we reach our targets that moment draws closer,” Samaras said at the joint press conference in Athens.

…and he buffed Greeks confronting them with a new identity crisis. He described Ireland as a model for Greece in repairing its public finances:

“We will follow the exactly the same successful example set by Ireland — both for the EU presidency and an exit from the crisis.”

Why were Greeks buffed? For the simple reason that they can still reckon ex PM Papandreou’s promise back in 2009 “to turn Greece into Denmark of the South [Europe]”. Redeeming this promise to real life is known: six months later, Greece surrendered to the arms of International Monetary Fund and turned into a Third World Country as concerned to salaries, health care and public services. Not to mention corruption.

Until Greeks find back to their own identity and enjoy a corporate flat tax of 15%, businesses and self-employed most likely will fork out 90% of the taxes in advance and thus based on calculations on previous year tax obligation, should the new taxation draft be implemented as such.

Just by the way, if Samaras considers implementing a corporate flat tax, he should also consider to copy paste some more Irish taxation features like just and fair taxation based on real income and not on ‘the deemed income’ criteria. He should also exclude low earners from tax payment and not cash from the very first euro: whether from employees or self-employed.

In Ireland there is an income tax, a VAT, and various other taxes. Employees pay pay-as-you-earn (PAYE) taxes based on their income, less certain allowances. The taxation of earnings is progressive, with little or no income tax paid by low earners and a high rate applied to top earners. However a large proportion of central government tax revenue is also derived from value added tax (VAT), excise duties and other taxes on consumption. The standard rate of corporation tax is among the lowest in the world at 12.5%.

If  Greece copy=pastes features of taxation systems (Ireland, USA) it should do it, not just pick up what if may fit to IMF-plans and let employees and pensioners on the penny squeezer.

More on Samaras – Kenny meeting here