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LOS ANGELES-the heart can beat car culture in Los Angeles, but the country's second largest city has allowed a two-thirds of new car dealers

It seems a little to see as and sparkling car SUV dealer lots left the city in order to avoid criticism calls business tax penalty.

Mayor Antonio Villaraigosa announced this week, days before the Los Angeles Auto Show, which he wants to eliminate the business tax on new car dealers in an effort to lure them back and keep the dealer's left.

Business tax is self-defeating because it brings a limited income while scaring the car dealership that will generate huge sales tax revenues are gone, the mayor said.

"For too long, La business taxes have pushed a car dealership outside city limits," said Villaraigosa. "It is time to reform the way we tax car dealers so we can bring more jobs and more sales taxes to our city."

(CNN) -"no matter where olive trees grow, You won't find a lot of taxes are collected," the Mayor of a small town in Southern Spain said some years ago. He shrugged; such is life.

Perhaps he did not know that a few academics high-powered it will come with the same conclusion. When they analyzed European "shadow economy"–defined as the areas which fall outside the scope of the taxman–those of Greece, Italy, Spain and Portugal to the much larger (relatively) than those in Northern Europe.

That's partly because of the high number of entrepreneurs and family businesses, which tends to deal with cash and pay little tax. But for many economic commentators, national pastime also taxes in most of southern Europe, and a significant factor in the growing financial crisis.

According to a 2007 paper by economist Friedrich Schneider, shadow economy in Italy accounted for 13.9% of the gross domestic product (GDP), which Spain 12.0%; Portugal 19.2% and Greece surprisingly 25.1%. In comparison, the shadow economy AS is 7.2% of GDP. A report of the European Union came up with the same numbers.

Silvio Berlusconi thinks a few years ago that high tax rates in Italy make the avoidance of "rights" to many. And evidence shows that wherever the rates of tax and social security contributions, the shadow economy.