Income: 6 months working to pay taxes and contributions

Income: 6 months working to pay taxes and contributions

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From the New Year until yesterday, June 24, we worked exclusively to pay them taxes and contributions during the year. We work for the needs of the state machine 175 out of 365 days of the year. Starting today we work for a living because June 25 is Tax Freedom Day and it comes three days earlier than 2023.

The study data of the Center for Liberal Studies (KEFiM) revealed that the money for almost six months that the taxpayers get from their work does not go for their needs and their families but for the needs of the state.

Despite the heavy burdens, the state services do not satisfy the citizens. The satisfaction of citizens of Greece with the health system is the lowest among the 21 EU member states for which there are data, while, in fact, in the satisfaction of citizens with the education system and the judicial system, the country is in 16th and 17th place. each one.

According to the study:

– June 25 is Tax Freedom Day for 2024 according to the government’s tax revenue and social security forecasts. This year we will work for the state 175 out of 365 days of the year, 3 days less than in 2023.

– The 175 working days for the state predicted for 2024 is the lowest tax burden in the last 10 years.

– From 2019 to 2024 plans, the tax burden is reduced by 6 days, from 181 to 175 days.

– If the deficit of the General Government for 2024 is included, which represents future taxes, then the Tax Freedom Day for 2024 will come 5 days after June 30.

– According to ELSTAT accounting data, in 2023 we worked for the state for 178 days (HFE: June 28), while if the deficit of the General Government is considered, then the Tax Freedom Day for 2023 reached 7 day later, on July 5.

– Among the 27 EU member states, Greece has the 11th lowest tax burden (including deficits), improving its performance by 10 places compared to 2022, if it had in 21st place.

– 2018 was the year in which working days for the state reached 188 – the highest ever. If we factor in the deficit of the General Government, as borrowing to meet the need to cover state spending results in future taxes, then 2013 is the year in which working days for the state reached a high period – 234 – followed by 2020, a year in which during the pandemic, working days for the state reached 225. From 2020, a gradual decline was recorded, reaching 2024 where 180 working days for the state are expected, a performance that is the lowest tax burden since 2007 when the corresponding size was 177 days

– The biggest increase from one year to the next can be seen in 2011 when the working days for the state increased by 14, from 155 to 169. The corresponding biggest decrease can be seen in 2019, when the days to work for the state decreased by 7, from 188 to 181. When included in the deficit, the largest year-over-year increase was in 2020, when state work days increased by 44, from from 181 to 225. The corresponding largest reduction was in 2014, when the working days for the state were reduced by 43, from 234 to 191.

– Among the 27 EU member states, Greece has the 11th lowest tax burden, including deficits, improving its performance by 10 places compared to 2022, when it is in 21st place.

However, regarding the recurrence of taxes, OECD data show that the satisfaction of citizens of Greece (2023) with the health system is the lowest among the 21 EU member states for which data are available, while , correspondingly, the satisfaction of citizens with the education system and the judicial system the country is ranked 16th and 17th respectively.

Commenting on this year’s results, the General Director of the Center for Liberal Studies Nikos Rompapas stated that “the reduction in the tax burden recorded in recent years on Tax Freedom Day is a positive development first of all for of citizens and households facing the wave of accuracy.

This tax relief, which is also the main axis of the proposals submitted by special experts in the framework of the Economic Freedom Assessment of our country, is expected to improve the position of Greece in the Economic Freedom Index and further strengthen- on new investments, jobs and prosperity. .

In any case, the reduction of the tax burden, but also the further adjustment of the tax system in the direction of greater simplicity, neutrality and stability must continue. A tolerable, simple, neutral and stable tax system is a necessity for the dynamic development of the country, the real stabilization of household income and the sustainable stabilization of state revenues.”

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