One of the main proposals of the PN if they win the this general election is to expand tax bands, so that the highest of 35% would be paid only by those who earn more than 60,000 Euros (LM25,758) yearly. According to the estimate of the PN, this proposal will cost the country about 46.5 million Euros (LM20 million). The question is obviously, if Lawrence Gonzi is saying that by the year 2010 wants to change the deficit to surplus, from where is he going to get the money for the proposal that will cost the country 46.5 million Euros? In my opinion the answer is obvious, if the PN wins this general election, Lawrence Gonzi will increase the VAT to 25%, this will lead us towards the injustice system of the flat tax! Where the workers that have a low income and can’t keep up with expenses of life and the higher class people that go out eating at very expensive restaurants, pay the same rates of taxes!
13 comments:
Hi,
Is there a source regarding this 25% VAT.
Who said it. Without any sources, I believe it is a lie.
Keep up the good work with the blog.
The reduction of direct taxation (income tax) results in increased economic activity, from which the govt then receives more revenue from indirect taxes eg VAT, National Insurance contributions because more jobs are created, etc etc.
This is a basic economic rule, which even in Malta has already been proven in 2007 when the tax bands were widened, and previously when the highest tax rate was reduced from 65% to 35%.
So its useless scaremongering that the VAT rate will be increased to 25%.
Even in ex communist Russia these economic fundamentals are understood, but unfortunately you seem to be stuck in a time wrap
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