It’s all Greek to me, Pt. 2

A month or so ago I pondered the source of Greek debt. I still don’t have a definitive answer. But contemplate this – the Greek government took in USD $118.5 billion in revenues for 2010 (remember, this is during a recession), and spent $150.6 billion.

It’s estimated Greece loses €15 billion/yr to tax evasion – mostly by the wealthy. €15 billion = USD $19.9 billion. That means tax evasion accounts for 61% of Greece’s deficit. Add it up over time.

Taxes do things. Not paying them has consequences. With the country collapsing perhaps it wasn’t such a great deal to thumb your nose at the taxman after all.

And it certainly helps explain the vehemence of this.