The Slovenia Times

Primorske Novice blasts govt for wanting to reverse tax reform


Koper - The newspaper Primorske Novice is critical in its commentary on Friday of the government's decision to reverse the tax changes introduced by the previous government. It seems the actual changes are not the problem as much as the fact that they came from the predecessor.

On the one hand, the government is adopting measures helping people and businesses overcome the cost of living crisis, on the other hand, it is set on preventing a higher income tax credit, the paper says under the headline Government Is Giving and Taking at the Same Time.

Saying this was needed for the sake of stable public finance is poor reasoning, considering how much public expenditure is expected to increase in the face of poor economic outlook.

Also, it might be likeable, but not very convincing, to say that the move would take away privileges for a handful of rich because in general the changes will be felt the most by the middle class.

It is clear that voters expect the new government to clean up after the previous government, but not indiscriminately.

This was one of the few things the former government managed to steer in the right direction. Reducing the tax wedge is one of the long-term economic goals Slovenia should pursue, but the new government's changes would reverse this course.

Such quick succession of changes is in contradiction with aspirations for a predictable and strategic fiscal policy instead of one tailored to the needs of those in power.

"Above all, it would help reward the best, most educated and most creative, and not mostly those with the lowest pay. Unburdening of the lowest salaries ... will not bring a higher value added and a development breakthrough.

"Because - and herein lays the irony - a greater burden for the most creative actually means that everybody will have less in the end."


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