In an attempt to rein in the shadow economy and collect more tax revenue, Greece just outlawed cash transactions greater than 1500 Euros. Anything over 1500 Euros must be purchased using debit or credit so it can be tracked.
Greece will lower the current 75,000 euro income threshold that is subject to a 40 percent tax rate as part of reforms to urgently boost government revenues, the country's finance minister said on Monday.
"The 40 percent tax rate will be applied on income levels that are lower than what is the case today, but there will also be intermediate rates that will provide relief for low and middle incomes," Finance Minister George Papaconstantinou told Ta Nea newspaper in an interview.
- I hope to God they fix things here or we will start to see measures like this in America, where they try to make sure every transaction is tracked and taxed and start increasing taxes on middle class earners. Right now they are going for the rich, but soon the brackets will be adjusted so that the new taxes fall on people making less and less money each year.
Already we are seeing this. As part of the healthcare reform bill, any business that buys something over $600 must now complete a 1090 as part of the government's attempt to make sure everything is taxed all the time (your new ipad or a contractor you hire for 1 job for example). Not that it's wrong to collect legitimate taxes, but these measures will someday have a big effect on your average Joe, be it through direct tax increases on the middle class or higher prices in consumer goods due to companies having additional administrative strains because of things like PACT or the new health care reform bill.
"From 1. Jan. 2011, every transaction above 1,500 euros between natural persons and businesses, or between businesses, will not be considered legal if it is done in cash. Transactions will have to be done through debit or credit cards"
"There's tax relief for incomes up to 40,000 (euros)"
"Taxable income based on the new scales will include capital gains from the short-term trading of stocks"
"Deposits in banks outside Greece are exempted from audits of their origin if they are repatriated within six months of the passing of the tax bill and are taxed with a 5 percent rate"
"Wages of board members in unlisted state companies will fall by 50 percent"
"The budget bill for allowances and compensations will be cut by 10 percent"
In addition, attempts to collect more sales taxes (VAT), Greece to levy 40% tax rate on more earners."There's tax relief for incomes up to 40,000 (euros)"
"Taxable income based on the new scales will include capital gains from the short-term trading of stocks"
"Deposits in banks outside Greece are exempted from audits of their origin if they are repatriated within six months of the passing of the tax bill and are taxed with a 5 percent rate"
"Wages of board members in unlisted state companies will fall by 50 percent"
"The budget bill for allowances and compensations will be cut by 10 percent"
Greece will lower the current 75,000 euro income threshold that is subject to a 40 percent tax rate as part of reforms to urgently boost government revenues, the country's finance minister said on Monday.
"The 40 percent tax rate will be applied on income levels that are lower than what is the case today, but there will also be intermediate rates that will provide relief for low and middle incomes," Finance Minister George Papaconstantinou told Ta Nea newspaper in an interview.
- I hope to God they fix things here or we will start to see measures like this in America, where they try to make sure every transaction is tracked and taxed and start increasing taxes on middle class earners. Right now they are going for the rich, but soon the brackets will be adjusted so that the new taxes fall on people making less and less money each year.
Already we are seeing this. As part of the healthcare reform bill, any business that buys something over $600 must now complete a 1090 as part of the government's attempt to make sure everything is taxed all the time (your new ipad or a contractor you hire for 1 job for example). Not that it's wrong to collect legitimate taxes, but these measures will someday have a big effect on your average Joe, be it through direct tax increases on the middle class or higher prices in consumer goods due to companies having additional administrative strains because of things like PACT or the new health care reform bill.
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