Breaking the camel’s back
The government is sticking to an irrational and unfair policy of raising money through more and more taxes. The income tax, which is essentially a head tax, and the lowering of the property tax threshold are two examples that show just how out of touch George Papandreou’s administration is with the situation in Greece right now. Its complete inability to really clamp down on tax evasion and its refusal to make any substantial changes to the way the state is run or to streamline it have led it right back to the easy solution of taxation. But this policy is another blow to wage earners and others who declare all their earnings and pay their taxes, while it puts an even greater strain on the most dynamic aspects of the Greek economy. The ruling party will soon realize that it has pushed the middle class too far by asking it to take the entire burden of the crisis because the government and the political system wants to protect employees who have no real job in the civil service and people who retire early in their 50s.