Saturday, May 1, 2010

M'sia may be the next Greece, warns economist, and may end up as a PIG

A council member of National Economic Advisory Council (NEAC) warns that resisting the GST will set the nation on the economic downslope like Greece and other PIGS countries - PIGS is an acronym referring to Portugal, Italy, Greece, Spain, and more recently the Ireland and the UK, which are all facing issues of high government debt and deficit, relative to GDP.

Danny Quah, the NEAC council member and London School of Economics (LSE) professor, said the council  was proposing a reduction in corporate and income tax to soften the blow of the GST.

I'm no economic expert but I think GST or no GST, the Government has to be responsible for the income that it receives from taxpayers. Is the government spending the people's money wisely? The answer: NO! 


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