Tuesday, April 02, 2013
2012 Deficit: The dismantling of Malta's welfare state?
Malta's official 2012 final financial figures are out. As predicted, the deficit is much higher than expected. Reducing income tax for high earners will not only be socially regressive, but will also rob Malta of a much needed source of revenue, and thus widen the financial hole. In turn, this will result in greater pressure on Malta's welfare state, the same welfare state which has helped Malta avoid massive poverty, unlike many other countries which have long gone neo-liberal. Approving such policies in an age of austerity is uncalled for.