Greek debt crisis: Banks reopen amid tax rise

[brooklynite]

Source: BBC

Greek banks are reopening after being closed for three weeks because of the deadlock over the country's debt, as the government initiates repayment of its loans to the ECB and IMF.

Athens reached a cash-for-reforms deal aimed at avoiding a debt default and an exit from the eurozone.

But many restrictions remain and Greeks also face price rises with an increase in Value Added Tax (VAT).

Germany has said it may consider further debt concessions to Greece.


Read more: http://www.bbc.com/news/world-europe-33590334

[Astraea]

1. Great that banks are open again but

taxes will hit poor people the hardest. When are the richest people going to start paying their fair share?

[brooklynite]

2. I think that's a question directed to Syriza...

Why aren't they cracking down on Greece's historically high tax evasion rates?

[cstanleytech]

6. Well whats considered "rich" in Greece and how many of those "rich" do they have that live there

that they can tax and what % of their income should be taxed?
Also say you tax the "rich" in Greece for 100% of their income but still spending more then your taking even after that then what?

[turbinetree]

3. And where is Goldman Sach's in this enterprize......................and the VAT.......oh boy........

http://www.theguardian.com/business/economics-blog/2012/may/18/who-blame-greece-crisis

http://www.alternet.org/story/145884/how_the_monsters_at_goldman_sachs_caused_a_greek_tragedy

http://www.wisegeek.com/what-is-a-value-added-tax.htm

[Igel]

4. Many have suggested a federal sales tax.

It would probably take the form of a VAT.

Others have called for a VAT in the US anyway, under the rather odd assumption that it wouldn't hit the end purchaser but the middlemen and producers.

How regressive the tax is depends largely upon what's taxed. If you're poor, most of your income goes for rent and food, typically not covered by the VAT. Don't know how a VAT applies to imported goods.

[Beauregard]

5. All sales taxes are regressive.

[cstanleytech]

7. Well there is a solution to make sure the sales taxes dont hurt the poor if that is your concern

and that is to provide them with a card that they use for every purchase where sales tax applies and it tracks their purchases and at the end of the year they get it back at the end of the year like a tax return.
The reason I say tracking is because if it just removes it at the checkout there is to much chance of abuse, if the amount of their purchases (not what they purchase, just the amount) is tracked it can hopefully prevent any fraud from occurring because they can institute a cap on the amount that will be returned.