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Taxation and Rebellion: A Historical and Philosophical Perspective Read chapter Read first chapter

2017 | OriginalPaper | Chapter

12. Overtaxation of Private Sector Salaried Employment as a Key Impediment to the Recovery of Greece

Author : Michael Mitsopoulos

Published in: Taxation in Crisis

Publisher: Springer International Publishing

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Abstract

The practice of taxing heavily employment in the private sector in Greece is a key factor that impedes the growth of the average Greek company, reducing productivity and salaried employment to low levels even before the crisis. The disadvantageous treatment of private sector employment, through the tax wedge, takes place when compared both internationally and, with other income source alternatives, domestically. The high tax-free threshold that does not focus on supporting families and pensioners in old age and the high non-retributive social security contributions are among the main parameters that have to be changed in a drastic way in order to alleviate the situation of private sector employees, especially up to medium incomes, in a fiscally neutral way. An additional rationalization of the excessive progressivity of income taxes should aim toward the long-term growth of employees that earn higher wages, from their currently low numbers. An increase of growth prospects and decline in country risk are needed, both to bolster the lower end of the job market and to stop the decline at the top end.

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previous chapter Taxing Energy: Why, How, and How Much?
next chapter The Reaction of the Greek Private Sector Job Market to Changes in Tax Rates and Uncertainty
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Metadata
Title
Overtaxation of Private Sector Salaried Employment as a Key Impediment to the Recovery of Greece
Author
Michael Mitsopoulos
Copyright Year
2017
Book
Taxation in Crisis

Print ISBN: 978-3-319-65309-9

Electronic ISBN: 978-3-319-65310-5

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-3-319-65310-5_12