The issue isn't the tax burden, it's high rate of tax evasion.

http://www.nytimes.com/2011/12/25/world/europe/italy-tries-t...

http://www.nytimes.com/2013/01/28/world/europe/italys-new-to...

http://online.wsj.com/article/SB1000142405270230375390457745...

It's both:

https://www.cia.gov/library/publications/the-world-factbook/...

There are people that do not pay taxes, but they are compensated by those who pay. The net effect is actually that the tax burden vs GDP in Italy is higher than in places like, say, Germany.

The reason Italy has a high public debt is not tax evasion, is excessive public spending. The reason many business are failing is not tax evasion, is a crazy tax law that kills many to reward few. That is why many Italian hate taxes, because they are unjust.

that's reasonable analysis, and my initila argument was deliberately simplisitc just to make a point, rather than to complexify Italian taxation systems. You and your interlocutors among you seem to have covered this nicely for anyone who was interested in the details (which I didn't have time for).

"people pay taxes in Italy"

You wanted to say "some people", since a third of the people don't pay them (see the Uif research published in 2012). It's a huge number.

Do inform yourself a bit on the topic. It's way more easier than you think.

Do read my comment below which explains better and do notice the quality of the comment I was answering to.