Taxes? What Taxes?

Today’s WSJ reports that Italy’s President Prodi has hired a man known to some as ‘Dracula’ to help collect billions in the country’s collective unpaid taxes. In the story Beppe Severgnini, a social commentator compares Italian and American’s reactions to tax evastion and says there is a solidarity among tax evaders.

“In America, if you cheat on your taxes your neighbors won’t talk to you, in Ialy, they’ll ask you how you did it.”

The country is facing serious fiscal pressure with so many people avoiding payments. “Italy is like a boat in which half the people are pulling the oars while the other half are kicking back, enjoying the ride.”

In one northern town, tax police found that 35% of the cafes and 57% of the clothing stores failed to issue reciepts” There doesn’t seem to be any way that Italians can have such an appetite for fine watches and expensive cars based in their reported incomes.

Another snare the taxmen sets involves the vehicle registration database. There are 5800 Italians who declare incomes of less than 5000 euros a year, but who drive cars with more than 100,000 euros.