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Greece’s Central banker calls for further tax reforms

Reforming the tax system is imperative to avoid upsetting fiscal balance in the post-pandemic period, Bank of Greece’s governor Yannis Stournaras said on Wednesday, addressing the Academy of Taxation and Accounting of the European Organization of Civil Law.

In his speech, the central banker said it is necessary to change the fiscal policy mix towards easing the tax burden for workers and enterprises and move towards a more fair distribution of this burden.

Lowering taxation offers a multiplying positive effect on the economy, both on the demand and offer side.

“In 2019, a significant effort of tax reform began with the introduction of reforms of permanent nature focusing on a gradual easing of tax burden,” Stournaras said, adding that a further reduction of tax rates and social insurance contributions will support employment, competitiveness and economic growth and will operate as an incentive to reduce tax evasion and informal labor. [amna]

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  1. When are people going to learn that the number one enemy of any nation is that nation’s central bank?

    • OK, comrade. That is abroad statement that in the case of Greece is factually wrong. The Greek banks were always ethical in Greece, as was its central bank. The Greek governments of the 80s, 90s up until 2008 knowingly put the country into an economic mess. Specifically a very left wing government that doled out ridiculous social programs with no revenue to support them, in order to buy votes and keep them in power for yearrsss. Utter destruction of a whole nation by lifelong corrupt government actors. The banks in Greece never once acted unscrupulously in this particularly case. Greek schools still do not even accurately teach their students how the economic crisis came about and who was at fault. As stated already it was the politicians along with a rampant culture of tax evasion, not the bankers, who have caused serious problems for Greece for a very long time.

      • Please don’t try to convince us that the bankers are not in bed with the politicians in Greece, US, Russia, China, Turkey, Brazil or anywhere else. Nobody will believe such a fairy tale. As George Carlin correctly said: “It is one big club and you are not in it.”

        • What? Sorry but what is a communist troll under a fake name doing using capitalist technology anyway? You missed the point completely. Or can’t even address it. I stated the banks in Greece did not cause the financial meltdown of the past 15 years and actually have acted scrupulously as far as Greece has been a nation state. Unlike fat government hacks who get paid to have unions go on strike. What do banks having a relationship with governments have to do with anything? A prosperous nation has people managing its capital resources, that is shocking to you apparently or indicates foul play by its nature? Ignorance. Russia? you mean your failed icons? That is a corrupt ex KGB led joke of a nation state that has a smaller GDP than the state of Texas but a land mass bigger than most continents? Typical Greek on the dole using generalities to try to make some flimsy uninformed argument. You are why the top 20 percent of Greece left long ago and why any young person with a future, ambition and an honest work ethic wants out.

  2. People actually need to pay their taxes for anything to get better, in Greece. I am not talking about private sector workers either. Salaried workers like those at stores, businesses etc. in Greece are burdened the most with taxes. it’s the Kleptocrat class: the dentists and doctors and lawyers and small taverna owners that under-report, hide earnings and do not do their part. No one likes taxes, but you need tax revenue for a country to function; for roads, school systems and infrastructure to work effectively. And you need a government that responsibly invests its tax revenues.

  3. Amen to that!

    When will it happen though

    • I have a pessimistic view of this based on what we see in Greece every year. For example, I befriended someone in dental school recently who told me the dentist she works for doesn’t report her on her taxes ever. She is “black”. These are adults leading the next generation by example down the same path. It’s endemic. There is a research paper by Greek American Tufts professors on why there is little Civil ethics in Greece and why Greece is still so corrupt. Costas Azariadis and Yannis M. Ioannides wrote it. I suggest reading it.