Another Greek Lesson

Conservatives like to point to Greece as an example of what will happen to us unless we follow their strong medicine and drastically reduce spending. But so far their predictions have failed. We haven't slashed, and our economy is doing better than countries that have.

Many economists, Paul Krugman among them, believe that the U.S. economy would be doing much better now if Obama had been able to implement the stronger stimulus he originally proposed. Instead the GOP blocked much of Obama's plan, apparently to sabotage the recovery to make him a one-term president.

But there are other lessons we can learn from Greece: tax evasion is rampant, and they have a tax collection shortfall that runs into tens of billions of euros. The major scandal in Greece now is the Lagarde List, a list of wealthy Greeks who have hidden their wealth in Swiss bank accounts. Additional tax collections are half what they were expected to be and investigations of off-shore tax evaders was derailed by George Papaconstantinou, who took the list with him when he resigned, and then removed his friends from the list before handing it over to his successor, Evangelos Venizelos, who also appears to be shielding his pals.

A magazine publisher, Kostas Vaxevanis, published the list and was prosecuted by the Greek government for "invasion of privacy." His article about his persecution by the Greek government was recently published in The New York Times. After the publication of the list two men suspected to be on it were found dead, apparently suicides.

Conservatives in the United States keep saying we have a spending problem, and we do to some extent. But the United States has a huge tax collection problem that dwarfs Greece's. Many people and corporations are still not paying their fair share. People like Mitt Romney pay less than 15% in taxes, using off-shore accounts and other tricks only the wealth can use to hide their wealth. Corporations like GE pay less than zero in taxes, and companies like Apple and Reebok squirrel away all their profits overseas using gimmicky licensing payments.

I say it's time Paul Ryan to keep the promise he made during the election. For every dollar of spending cuts to non-military programs they should eliminate a dollar of tax loopholes that only giant corporations and guys like Mitt Romney can take advantage of.