Greek Left proposes 1% wealth tax on top 1% of citizens

The Greek Left Solidarity Alliance (ELAS) has proposed a ‘patriotic contribution’ consisting of a 1% tax on the total net wealth of the wealthiest 1% of natural persons. George Pappas, the deputy finance spokesperson for ELAS, explained that the measure would be implemented through a property registry designed to capture a complete picture of taxpayer assets, including real estate, bank deposits, stocks, and even high-value items such as jewelry held in bank safety deposit boxes.

The proposal has sparked intense political debate. Minister of State Akis Skertzos criticized the plan, arguing that the party is confusing annual income with total wealth. He claimed the projected revenues were significantly overestimated by applying the percentage to income rather than net assets. In response, ELAS clarified that the tax is intended to be an extraordinary, non-permanent measure aimed at strengthening the middle class.

Other discussions surrounding the proposal include the potential use of global databases to identify wealth and the economic impact of such taxation. Critics warn that high wealth taxes could lead to capital flight, where assets are moved abroad to avoid taxation, potentially reducing overall tax revenue.