The disposable income of Greece’s average earners has been slashed by more than 50 percent due to overtaxation in recent years, according to the latest data examined by Kathimerini, which also paints a grim picture for the coming years.
What’s more, the reduction of the income tax threshold is expected to further impact the disposable income of households. Brussels expects Greece’s primary surplus to beat its target of 3.5 percent of GDP again next year, rising to 3.9 percent, and then to 3.7 percent in 2019. However, the primary surpluses Greece has posted in the last two years are largely due to exorbitant taxes rather the result of growth.
Moreover, while the European Commission’s statistics point to a disproportionate increase in taxation in Greece, at a time when the economy was shrinking, the country’s industrialists and political opposition say overtaxation has led to more tax evasion and the failure of the tax system.