from The Daily Bell:
Shining the Light on a Culture of Tax Evasion … Tax evasion, particularly among the professional classes, has been an open secret in Greece for years. Such a foregone conclusion, in fact, that banks loaning to individuals find it necessary to estimate their clients’ “true” incomes when determining how much money to lend them. Last year, in the midst of the country’s financial crisis, the problem took center stage as a result of research by Adair Morse, associate professor of finance, and Margarita Tsoutsoura, assistant professor of finance. The researchers published a groundbreaking paper that quantified the widespread tax evasion for the first time and forced Greek policy makers and the public to confront some unpleasant truths. – Chicago Booth Magazine/Spring 2013
Dominant Social Theme: The Greeks need to understand civil society includes a graduated income tax.
Free-Market Analysis: The research by Morse and Tsoutsoura (see above) continues to make a splash and has been codified in this Spring issue of Chicago Booth magazine because it offers government officials a new way of calculating tax evasion.
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