The Government’s proposal to reduce the 35% income tax rate to 30% is not only a measure that endangers the sustainability of the pension system, education, health and other social services, but is a proposal that humiliates families with low and medium income earning.
This proposal is also part of a neo liberal concept, which finally will increase the social gap between classes. To sustain the reduction in government's revenue, the government will have to either increase taxes on the low and middle income earners or either reduce social benefits, and services. Increase in excise duties is not enough to minimise the negative impact of such measure.
This is the same proposal that was initiated by the Reagan Administration in the United States, and found support in Europe by the Italian Government under Silvio Berlusconi. This proposal brought about an economic and social collapse, wherever it was introduced.
Zminijietna appeals to the Government to revise its position and introduce measures to help the most vulnerable in society, such as pensioners, disabled people, and minimum wage earners.
Sustainability of universal free social services requires more
revenue. We appeal other progressive organisations not to endorse such proposals. Alternattiva Demokratika and The Communist Party are also against this measure.
Richard Mifsud
PRO
Zminijietna - Voice of the Left