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Italy Considers Penalty on Cash Withdrawals to Fight Tax Evasion

RF Rome shopping

Photographer: Peter Zelei Images/Moment via Getty Images

A radical plan to discourage cash payments and reduce runaway tax evasion has some Italians up in arms.

With one of the highest tax rates in Europe, Italy lost 107.5 billion euros ($118.5 billion) to tax dodging and under-reporting in 2016. The country has an evasion rate of about 30%.