Where will the gov­ern­ment get what it’s about to give to the needy?

Malta Independent - - INDEPENDENT -

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

Ed­i­tor’s pick

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?

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