Monday 25 July 2011

India catches GTE*

The plight of ordinary Greeks has gained our sympathy. We've been fooled. Uncontrolled frustration led 'the people' from their cafes and into the streets and we were amused when olives were pelted at passing politicians... Nevertheless that's only half the story or one side of the equation. Greece has one foot in Hades for two reasons:

  1. Papandreou spent money he never had on Zeus-knows-what and;
  2. the Greek citizenry never paid their taxes.
When revenue forecasts are inaccurate, projections fail. So when the Greeks evaded their tax obligations government was forced to borrow more and the rest, as they say, is written...

India has seemingly followed suit. That country loses approximately 14 trillion rupees from tax evasion annually which translates to an annual loss in growth of approximately 5%. India would have rivaled China as the world's fastest growing economy...

*Greek-like Tax Evasion


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