I found interesting the former manufacturers’ lobbyist, ex-CBM governor, ex-Labour finance minister, ex-backbencher and present director on amongst others the largest listed insurance firm on the island, Lino Spiteri’s statement (The Times, 21 September) that “the recession could be around in our islands for longer than the International Monetary Fund thinks”.
What was interesting was the “assistance to selected manufacturing companies”, subventions which are only guilty – claimed the socialist minister who did not stick out Sant’s 22 months in government – of ‘fractionally’ increasing the budget deficit. This without spelling out that such subventions whet the appetites of those manufacturers and other sector economic units not thus helped for similar subventions (note the constant lobbying by, amongst others, the tourist sector). After all, does he not subscribe to the equality principle, as enshrined by the socialists turning Malta into a republic, by derecognizing the balancing influence of the Commonwealth’s head as Head of the State, so that no one would be held above any other Maltese (to quote in my own words), what one of the Nationalist big heads who defected from Borg Olivier’s leadership at the time stated? (Something no longer the case with Malta’s accession to the EU!).
Assistance given to “selected manufacturing companies”… this in the same bit in which he constantly was harping on presumed abuses of social services, and for means-testing! No doubt they would more than welcome any move to make the majority of Gozitians and Maltese fork out funds to purchase compulsory medical and health policies. As would any born socialist still flying these colours, who favour compulsory national insurance contributions as well as compulsory contributions from the same citizens for private health plans as the state system, would no longer be offering its service for free to those “means tested” as earning above a determined benchmark. Those unlike the super-rich with no clever accountants able to hide their income!
A similar diatribe I take exception to by this economist was that against the government’s enactment of its pre-election promise to reduce taxation from 35% to 25%. A re-negation justified by the gospel of envy politics of the leftists, as this “would save 10% in the Euro earned by the bulk of the upper-middle and higher income groups.”
But is this correct? Do not the bulk of wage earners, from successive small increments in pay over the years, and some pensioners and small holders of property and other assets, reach the 35% tax level? While the rich and super rich, if they were in another jurisdiction, could not hope to pay less than 65% or 90% of the millions that come their way? Is this not after all the bottom line of all attempts at giving Berlusconi’s government a hard time for stamping out on the super rich’s siphoning of earnings into tax havens?
Yes: when the Prime Minister was minister of finance he correctly repeated the economic tenet that reducing taxation would actually increase the exchequer’s tax take. Naturally, one has to add the proviso that tax abuses would be stamped out, not condoned pre- or post-elections.
Any comments?
If you wish your comments to be published in our Letters pages please click button below. Please write a contact number and a postal address where you may be contacted.
Search:
MALTATODAY
BUSINESSTODAY
Download MaltaToday Sunday issue front page in pdf file format
All the interviews from Reporter on MaltaToday's YouTube channel.
