Where will the government get what it’s about to give to the needy?
Now that the Budget Speech has been dissected and analysed by all, some questions remain.
Such as this: Now that the government is about to give to the socially-needy families and persons who have fallen back over the past years, from where will it get the money it needs to do this?
This is not an indifferent question. On the contrary it is of vital importance.
A country’s finances balance each other out: The various sections of a society are interdependent and that is as it should be for that is precisely why the various sectors are in the same country, not just because they happen to live in the same area but also because they are all parts of the same nation. So now that we know what the government is to give to the socially-needy classes, can one ask where will government get what it is about to give? The prompt answer from many will undoubtedly be that the government will get
the funds it needs … from taxes. Which leads to a second question: Who pays taxes in our country, the rich or the middle class?
So, to put it simply, the government is going to give to the needy what it gets mainly from the middle class.
Let us go over the Budget Speech in another way: What from the measures announced on Monday will impact more on the rich than they impact on the middle class?
Over the past years, successive governments have made life easier for the rich – Income Tax has been cut, so has Succession Duty, etc. The government might reply that growth is coming from online gaming, from financial services, but again one can immediately see these are sectors beloved by the rich. These sectors are not primarily associated with the middle class.
The big landowners, the developers on a large scale, the top industrialists use economies of scale to increase their revenue. This is the way things are and we must not demonise the rich or the top levels. At the same time, however, we can only state the obvious that what the government is boasting about giving to the needy, which is the right thing to do, it will be doing by taking more of what is contributed by the middle class. It is the middle class that will be contributing to the needy.
At the same time, this in a way is how it should be for that is what solidarity means. But one would have wished for the government to have introduced a measure or two of solidarity on the part of the rich so that the country would see that all are contributing to the needy. There are so many ways how this could have been done. Let us suggest one, but there must be thousands more: What if the registration tax on luxury cars over a certain level was introduced so as to constitute solidarity with the needy?