Tax Evasion and Austerity-Plan Failure

Greece’s austerity package included an unprecedented increase in the VAT rate, but the resulting increase in revenue was much lower than expected. This column links this disappointing result to the ‘transparency response’ of firms to higher tax rates. In countries like Greece with poor tax monitoring, firms face a tradeoff when deciding whether to declare […] View the full post at: Tax Evasion and Austerity-Plan Failure Related posts: Greece Approves New Austerity Plan Amid Protests Moody’s: Greece’s New Austerity Measures Lend Credibility to Fiscal Adjustment Plan Portugal PSD to allow parl’t approval of austerity plan