Unfairness, Inequality, and Tax Evasion: An Analysis of the Distribution of the Tax Burden in Greece, 1955–1989

This chapter analyzes the distribution of tax burden in Greece after the Second World War, focusing on the period from the mid-1950s to the late 1980s. It is shown that for the most part the system was prejudiced against the middle- and lower-income groups. This made the system unfair and increased its perceived illegitimacy. Added to the perceived unfairness were features such as taxes in favor of third parties, the revenue from which was given to the professional classes and organizations in a strong negotiating position. The chapter suggests that these characteristics contributed to the very high degree of tax evasion burdening the Greek system of taxation, one of the most severe problems of the country’s economy today.