More taxes looming for salaried workers in the private sector

More taxes looming for salaried workers in the private sector

Taxpayers with annual incomes of at least 30,000 euros have suffered the biggest tax increase in the years of the financial crisis. It is the same group that will have to pay some 46.2 percent more tax for their 2015 incomes this year in comparison with what they paid for 2009.

Official statistics reveal that the governments in the last few years have targeted the income brackets of 30,000 euros per year or more. The current government has also said it will focus its hikes on this category. If the Finance Ministry’s proposals are accepted by the country’s creditors – regarding new tax rates for 2016 incomes and the rates of the solidarity levy – the taxation on the medium and upper income brackets will soar considerably.

This constitutes an extreme redistribution of incomes conducted via excessive taxation, mainly of salaried workers in the private sector. In practical terms, this type of taxation policy focuses on confiscating the bulk of those incomes in order to make the fiscal numbers add up in every year’s budget.

Therefore, if the tax rates on the incomes to be obtained this year are increased as planned, a taxpayer with annual revenue of 40,000 euros will face an increase in taxation of as much as 50.1 percent compared with the taxes paid on his or her 2009 income. This will also amount to a 7.7 percent tax rise compared with the 2015 income’s taxes payable this year.

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