Another problem is that tax receipts in Greece are way below what they should be. The Greeks' view is that their government is useless at spending public money,

Another problem is that tax receipts in Greece are way below what they should be. The Greeks' view is that their government is useless at spending public money, so they view it as their duty to dodge as much tax as possible. One law, for example, allows Greek property owners to avoid paying tax on a building until it is completed - so a lot of property owners don't build the top floor on block of apartments, so it isn't "finished" and therefore nontaxable. We had a similar problem in Ireland up until the 1980s/90s where dodging tax was practically a national pastime - if you rang up your bank, they would advise you on how to dodge tax! They would encourage customers to set up accounts in the Cayman Islands. Even the former Irish Prime Minister was in on the act: http://www.breakingnews.ie/ireland/ojidojsnmh/ http://www.breakingnews.ie/ireland/ojidojsnmh/ The key to solving the tax receipts problem is a strong body for collecting tax and heavy penalties for non-compliance.