4 ms·
One of Spains hidden problems in that stat is that they have regressive taxation, you pay a large monthly amount to be able to work. So many people literally ca
by teknopaul 4y ago
One of Spains hidden problems in that stat is that they have regressive taxation, you pay a large monthly amount to be able to work. So many people literally cannot afford to pay taxes because the taxes are more than they earn. Its crazy and needs to change. Result is a lot of pissed of low earners who have no interest in the recorded economy and work entirely in the black market. Many would love to be able to invoice legitimately but can't (economically) so lose good work, and that leads to huge lost opportunity for the country as a whole. Its madness. The government literally try to tax more than people earn. Clearly they rarely get money that doesn't exist, except some people who take a hit one month in the hope things pick up next month.
It's pretty much impossible to pay someone for a day's work. You have to either pay a full month (at which point the tax is reasonable), find black money to pay them, do no work, or do it yourself. Most people cant afford to pay someone a whole month's wage because that is what they are living off.
Some of that 20% is black market but most of it is lost opportunity.