Italy’s Taxes Drive Its Economy Underground

Italy’s corporate, capital gains, gift, and myriad other taxes are passed on to individuals and borne directly by workers. These high taxes have led to a growing shadow economy where people underreport work to avoid paying taxes. Many Italians save their income from tax collectors by illegally working in construction or services, transferring an apartment before the death of a relative, and hiding savings from the wealth tax in Swiss bank accounts.

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