Government suspending mortgage relief...

Darragh29

Just listening to the news here, if what I am hearing here is correct and I'm understanding it right, apparently the government have now decided to suspend mortgage relief for anyone but first time buyers who have bought within the last 2 years.

This would appear to mean that if you are not a first time buyer or you did not take out a mortgage on the basis of being a first time buyer within the last two years, then your mortgage relief is being suspended with effect from 1st May until it is "re-evaluated"... Someone please tell me that I have this completely wrong!

I must have this wrong, they can't be going to suspend mortgage relief on anyone except a FTB who bought within the last two years???

Darragh29

I'm listening to this on Q102 and it is true... This is the straw that will break the camels back...

gandalf

No reports online about it yet?

Who is saying this, is it a government source?

Darragh29

gandalf wrote: »

No reports online about it yet?

Who is saying this, is it a government source?

Not yet, but this is it for me, I'm not having it and that's the fu*king end of it as far as I'm concerned.

gazzer

Got this from another website forum

Mortgage holders in for shock on Friday

Most mortgage holders are in for a shock, as even those who are
within the seven-year window will have their mortgage tax relief
cancelled on Friday

That's according to Ciaran Phelan of the Irish Brokers
Association, who said that Minister Lenihan in his Budget three
week's ago said that all qualifying mortgages will receive Tax
Relief at Source (TRS) for the first seven years of the mortgage
only

However, "due to the Government's haste", many first time buyers
and other struggling mortgage holders who are still within the 7
year window, will have their tax relief cancelled on Friday, said
Mr Phelan

"We understand that the Revenue are pulling the Tax Relief at
Source on 1st May from the vast majority of mortgage holders,
except for the very obvious first time buyers i.e. those who are
still in their first home with the original mortgage lender. The
relief is being suspended for all others. Those for example, who
are still within the first 7 years of their mortgage, but heeded
good advice and shopped around for a better mortgage deal are in
for a shock when their mortgage payment shoots up in the very
month that their income will be slashed by increased taxes. Also
those people who have topped-up their mortgage in the first 7
years will be axed for a period of time," he said

Revenue had said that first-time buyers, who have not moved house
or re-mortgaged or re-financed will continue to receive tax relief
at source in the usual way

All borrowers currently receiving TRS are having their relief
suspended immediately, pending a review of their entitlements by
the Revenue under the amended TRS scheme

However while the Revenue say that they are "committed to carrying
out a review of all affected accounts and will at a later date,
reinstate TRS on all accounts that continue to qualify for relief"

They 'aspire' to have this completed by June 09 but say 'this
timeframe is purely indicative at this stage and given the number
of accounts involved across all institutions this review may take
longer to complete'

"Our concern is that many people's financial situation has already
come under serious strain over the last 12months. Some of these
mortgage holders that will be affected are stuck on fixed rates
and haven't even got the benefit of the recent rate reductions,"
said Mr Phelan

"The onus will now fall to each household to ensure that the
Revenue commissioners reinstate their TRS at sometime in the
future. Brokers throughout the country are standing by to give
assistance to all mortgage holders to ensure that they are
claiming and receiving the correct amount of tax relief.

As this is imminent, people who pay the net amount into their
mortgage account will clearly have a shortfall. Their mortgage
direct debt could bounce or the lack of funds may impact other
finance payments and this could affect their credit rating. It is
imperative that people are aware of this and act accordingly

hefty_langer

It was reported on newstalk as the source being the Irish Mortgage Institute or some such body... This is nuts that they try and slip this in AFTER the budget! I can see some serious public backlash on this...

LostinBlanch

Just heard about this on Newstalk now.

It won't be the straw that broke the camels back. People will just mutter and groan and whinge but do nothing about it.

jhegarty

If this doesn't bring down the government , I don't know what will.

http://www.businessworld.ie/livenews.htm?a=2404884 wrote:

Most mortgage holders are in for a shock, as even those who are within the seven-year window will have their mortgage tax relief cancelled on Friday.

That's according to Ciaran Phelan of the Irish Brokers Association, who said that Minister Lenihan in his Budget three week's ago said that all qualifying mortgages will receive Tax Relief at Source (TRS) for the first seven years of the mortgage only.

However, "due to the Government's haste", many first time buyers and other struggling mortgage holders who are still within the 7 year window, will have their tax relief cancelled on Friday, said Mr Phelan.

"We understand that the Revenue are pulling the Tax Relief at Source on 1st May from the vast majority of mortgage holders, except for the very obvious first time buyers i.e. those who are still in their first home with the original mortgage lender. The relief is being suspended for all others. Those for example, who are still within the first 7 years of their mortgage, but heeded good advice and shopped around for a better mortgage deal are in for a shock when their mortgage payment shoots up in the very month that their income will be slashed by increased taxes. Also those people who have topped-up their mortgage in the first 7 years will be axed for a period of time," he said.

Revenue had said that first-time buyers, who have not moved house or re-mortgaged or re-financed will continue to receive tax relief at source in the usual way.

All borrowers currently receiving TRS are having their relief suspended immediately, pending a review of their entitlements by the Revenue under the amended TRS scheme.

However while the Revenue say that they are "committed to carrying out a review of all affected accounts and will at a later date, reinstate TRS on all accounts that continue to qualify for relief".

They 'aspire' to have this completed by June 09 but say 'this timeframe is purely indicative at this stage and given the number of accounts involved across all institutions this review may take longer to complete'.

"Our concern is that many people's financial situation has already come under serious strain over the last 12months. Some of these mortgage holders that will be affected are stuck on fixed rates and haven't even got the benefit of the recent rate reductions," said Mr Phelan.

"The onus will now fall to each household to ensure that the Revenue commissioners reinstate their TRS at sometime in the future. Brokers throughout the country are standing by to give assistance to all mortgage holders to ensure that they are claiming and receiving the correct amount of tax relief. As this is imminent, people who pay the net amount into their mortgage account will clearly have a shortfall. Their mortgage direct debt could bounce or the lack of funds may impact other finance payments and this could affect their credit rating. It is imperative that people are aware of this and act accordingly."

Darragh29

LostinBlanch wrote: »

Just heard about this on Newstalk now.

It won't be the straw that broke the camels back. People will just mutter and groan and whinge but do nothing about it.

I don't think so this time, I reckon this is the thing that will make people finally react in a more realistic fashion to these useless shower of incompetent gits that are running this country.

gazzer

Darragh29 wrote: »

I don't think so this time, I reckon this is the thing that will make people finally react in a more realistic fashion to these useless shower of incompetent gits that are running this country.

I hope you are right. I am fed up with the majority of the population of this country just bending over with a massive tub of vaseline and letting the government shaft them senseless:mad:

Darragh29

gazzer wrote: »

I hope you are right. I am fed up with the majority of the population of this country just bending over with a massive tub of vaseline and letting the government shaft them senseless:mad:

I'm dropping tools and going into town at the first word I hear of a protest about this. Enough is enough, my hole is the width of the Grand Canyon after this government.

NewFrockTuesday

The sneaky bastards :mad: Typical FF sleveen sucker it in under the door theythinkwereallfuggkingidiots tactics.

Im going to fire eggs at the Dial on the way home. Ive had it with this shower of cvnts. They should be run out of it. Someone called them shaved monkeys in suits before and they were bang on the money. Nothing is clear, nothing is put on the table as it should be - we should be told we are about to be financially raped yet again.

Sorry....I ll take myself off to the rant forum as I dont have anything constructive to add and I want to swear alot.

Trotter

Lets be realistic.. No FF government in this country can do anything bad enough to be forced into an election. Theres infinite tolerance and shoulder shrugging. There's a global recession, but we are in a deeper sort of muck than many, due to the idiocy of this government. They'll get away with it, as they always do, and we'll see them being carried shoulder high in count centres around the country, whenever they decide to call a general election.

There is no low which will prompt a general election. I firmly believe that now. People say.. who's the alternative? Even if the alternative is bad, we need to enforce the rule that poor governments are sacked.

The camel will struggle on with yet more straw.

Am I right in saying that because I got my first house and mortgage 3 years ago, I'll now lose my allowance and will have to reapply for it?

Darragh29

Deepsense wrote: »

Sorry....I ll take myself off to the rant forum as I dont have anything constructive to add and I want to swear alot.

Stand fast, you're in good company.

Benedict XVI

jhegarty wrote: »

If this doesn't bring down the government , I don't know what will.

There are only three groups that can bring down the Government

1. The Greens

2. The Independents

3. The voters of the two constituencies that are having by-elections

I will take it as read that the govt will loose two Dail votes in the by elections

They will still need the Greens and Independents to pull out to cause a general election.

Will the Greens take the moral high ground on this issue and pull the plug ????

That's the only way you can bring down the Govt.

Darragh29

Trotter wrote: »

Lets be realistic.. No FF government in this country can do anything bad enough to be forced into an election. Theres infinite tolerance and shoulder shrugging. There's a global recession, but we are in a deeper sort of muck than many, due to the idiocy of this government. They'll get away with it, as they always do, and we'll see them being carried shoulder high in voting centres around the country, whenever they decide to call a general election.

There is no low which will prompt a general election. I firmly believe that now. People say.. who's the alternative? Even if the alternative is bad, we need to enforce the rule that poor governments are sacked.

The camel will struggle on with yet more straw.

Am I right in saying that because I got my first house and mortgage 3 years ago, I'll now lose my allowance and will have to reapply for it?

It would seem to be the case that unless you have remained with the same lender since you took your mortgage out, you are fu*ked...

copacetic

jeez, talk about causing a panic OP.


Unless you have moved your mortgage you are fine, and if you have it sounds like it is being suspended until you prove you are still in the same home, then you will get it back?
i.e all the talk of 2 years etc in the OP is purely rubbish.

NewFrockTuesday

Yep...seems to eb the case Darragh - although am I right in saying each will be reviewed? So we'll have to beg for our TRS? IS that what we've come to?

There are only three groups that can bring down the Government

1. The Greens

2. The Independents

3. The voters of the two constituencies that are having by-elections

I will take it as read that the govt will loose two Dail votes in the by elections

They will still need the Greens and Independents to pull out to cause a general election.

Will the Greens take the moral high ground on this issue and pull the plug ????

That's the only way you can bring down the Govt.

I want a pitchfork party outside. I want to ram it up the fat behinds of those sneaky irresponsible bastards. Civility doesnt work here its very clear now.

nuttz

Just a question to put out there:
Considering the benefits the government(this one or the next one) will gain from getting rid of this tax relief, what are the justifications in keeping mortgage tax relief?

snubbleste

Revenue doing their job shocker

gazzer

copacetic wrote: »

jeez, talk about causing a panic OP.


Unless you have moved your mortgage you are fine, and if you have it sounds like it is being suspended until you prove you are still in the same home, then you will get it back?
i.e all the talk of 2 years etc in the OP is purely rubbish.

Hundreds of thousands of people are going to have to proof wheter or not they are entitled to TRS. There are only a small number of staff working in that office. They will be further reduced by staff going on term time who are not going to be replaced. It is going to take forever to go through all of the claims.

Trotter

Darragh29 wrote: »

It would seem to be the case that unless you have remained with the same lender since you took your mortgage out, you are fu*ked...

I'm with the same lender since day 1!

copacetic

gazzer wrote: »

Hundreds of thousands of people are going to have to proof wheter or not they are entitled to TRS. There are only a small number of staff working in that office. They will be further reduced by staff going on term time who are not going to be replaced. It is going to take forever to go through all of the claims.

holy exaggeration batman, where are these hundred of thousands of FTBs from the last 7 years that have all moved their mortgages coming from? Outer space?

gazzer

copacetic wrote: »

holy exaggeration batman, where are these hundred of thousands of FTBs from the last 7 years that have all moved their mortgages coming from? Outer space?

Well every person I know that has a mortgage moved to another bank over the last year of so to avail of a better rate. Now obviously I dont know hundreds of thousands of them but I would hazzard a guess that the majority of people that took out mortgages over the last 7 years moved to another provider in that time. There would be a couple of hundred thousand people who bought houses in the last 7 years imo.

copacetic

gazzer wrote: »

Well every person I know that has a mortgage moved to another bank over the last year of so to avail of a better rate. Now obviously I dont know hundreds of thousands of them but I would hazzard a guess that the majority of people that took out mortgages over the last 7 years moved to another provider in that time. There would be a couple of hundred thousand people who bought houses in the last 7 years imo.

Well I would agree that about 200k bought in last 7 years, but very much doubt the majority moved. I don't know anyone who moved in last year, the offers available are nothing like they were tracker wise. Most people I know took out trackers in 04/05/06 and there has been nothing like the same offers since.

The revenue have just also said that most peoples relief will start back up in June automatically with arrears paid. The thread title and OP is simply wrong.

gazzer

copacetic wrote: »

Well I would agree that about 200k bought in last 7 years, but very much doubt the majority moved. I don't know anyone who moved in last year, the offers available are nothing like they were tracker wise. Most people I know took out trackers in 04/05/06 and there has been nothing like the same offers since.

The revenue have just also said that most peoples relief will start back up in June automatically with arrears paid. The thread title and OP is simply wrong.

Well according to http://www.environ.ie/en/Publications/StatisticsandRegularPublications/HousingStatistics/FileDownLoad,18371,en.pdf Over half a million houses were built in the 7 years up to end of 2007. I would say there is going to be huge problems over this. I cant see relief starting back automatically in June but then I could be wrong

Darragh29

Trotter wrote: »

I'm with the same lender since day 1!

Well my OP bought her apartment with her sister and they both lived in the apartment without an issue. She bought her sister's half of the property off her as the sister wanted to move on and buy a house with her boyfriend.

That decision will cause her to have the mortgage interest relief suspended and she will have to re-apply for it while being hit for it in the meantime... It's just another exercise in beaurocratic bullsh*t from this government of blubbering useless f*ckmeisters.

Darragh29

copacetic wrote: »

Well I would agree that about 200k bought in last 7 years, but very much doubt the majority moved. I don't know anyone who moved in last year, the offers available are nothing like they were tracker wise. Most people I know took out trackers in 04/05/06 and there has been nothing like the same offers since.

The revenue have just also said that most peoples relief will start back up in June automatically with arrears paid. The thread title and OP is simply wrong.

If I am wrong, I said in the OP that I didn't have the full facts, I said it was basically breaking news and I was just saying it as I was hearing it on Q102... I doubt very much that the same government that takes a couple of months to process someone for the dole will have this all sorted out within 4 weeks by June. If they could do that, sure why bother suspending it at all???

Sleipnir

The moron Lenihan justified it by saying that people could afford to do without it because interest rates have dropped so low.
He also said that although mortgage interest relief is being suspended for now, it's likely that it will be abolished in the future.

So, justification was that interest rates have dropped but will we get it back if interest rates go up again? Will we hell, is pretty much his response.

Darragh29

Sleipnir wrote: »

The moron Lenihan justified it by saying that people could afford to do without it because interest rates have dropped so low.
He also said that although mortgage interest relief is being suspended for now, it's likely that it will be abolished in the future.

So, justification was that interest rates have dropped but will we get it back if interest rates go up again? Will we hell, is pretty much his response.

And of course he conveniently forgot about the small little matter of our INSANELY PRICED PROPERTY MARKET, which Fianna Fail encouraged though tax reliefs for builders and developers, against the best advice of everyone. Low interest rates are only worth something if you didn't have to pay over the odds for a roof over your head in this country if you bought during the last ten years.

is_that_so

Trotter wrote: »

Am I right in saying that because I got my first house and mortgage 3 years ago, I'll now lose my allowance and will have to reapply for it?

Not quite. First time buyers or people who can be identified as first time buyers will continue to receive it. The trouble is determining whether that house extension top-up, new mortgage from another provider or the deposit for the apartment in Bulgaria still qualify so Revenue, and it is Revenue doing this, have cancelled all of it for everyone else from Friday to figure it out. From what I understand once they sift through various types of loans it will be reinstated. It makes sense to me, but yet again we have a political decision that no-one saw fit to think through.

Fishtits

Regardless of the legality, the horror this will put vast numbers of "innocent" mortgage payers is horrendous. This amongst other policies will finish FF IMHO. So what will they call the "new" party?

I'm apolitical, but have many friends who are FF members, to say they're not happy would be an understatement.

I don't have a solution, we pay them (TD's) crazy amounts to start with, they get pensions whilst still employed (!), get redundancy for being demoted, a Minister (MR Martin) stated publicly that he held on to his permanent and pensionable appointment as a teacher because politics is an unpredictable business? Confident in his abilities obviously - wouldn't last a minute in the private sector

Shame on you all, seriously, you need to look to yourself and ask are you befitting yourself or the country?

While people who have masters degrees graduate,


One word, Wanker.

harsea8

Anyone know if this is going to kick in straight away? For example, my lender takes the money for my mortgage out of my bank account by DD on 10th of the month....will that one be effected or will it be the next payment in June?

Thought I'd post this quote from Irish Independent today that made me laugh..... "Mortgage holders were last night advised to increase the amount they are putting into their bank to cover their mortgage repayments as tax relief will end for all but first-time buyers from May 1"
Like most people have a pot of money lying around just waiting for someone to advise us to put a bit more in the bank for the mortgage....stupid f*cks!

Daithinski

Confusion? What confusion.

"Finance Minister Brian Lenihan says there should be no need for confusion about the future of mortgage interest relief."


"The move has caused widespread confusion, but Mr Lenihan insisted this morning that the change was simple.":eek:

Oh well thats ok then, if you say its simple, it must be simple.

How stupid must the general public be?

If only we had the genius type brain of the mighty Brian Lenihan

BTE72

I rang the revenue this morning and this is what i was told..

We bought our first house in 2002 and first qualified for TRS from 2002 and so were entitled to the higher rate for 7 years from then. Our higher rate was reduced in January to roughly €78 per month.

The revenue informed me this morning that as we moved house in 2005 we would be eligible for TRS for 7 years from then (as this is a new mortgage)so covering us up to 2012. However we are only eligible for the lower rate since it is still 7 years since our first trs application.

Also we had a top up in 2006 for which we will receive trs untill 2013 on that top up value alone.

I was told that my TRS would be suspended and that i didn't need to do anything i.e contact the bank or revenue and that the lender would forward the mortgage info to Revenue for reinstatement.

Also not to expect anything to return to normal until possibly early July

Hope this helps

Darragh29

BTE72 wrote: »

I rang the revenue this morning and this is what i was told..

We bought our first house in 2002 and first qualified for TRS from 2002 and so were entitled to the higher rate for 7 years from then. Our higher rate was reduced in January to roughly €78 per month.

The revenue informed me this morning that as we moved house in 2005 we would be eligible for TRS for 7 years from then (as this is a new mortgage)so covering us up to 2012. However we are only eligible for the lower rate since it is still 7 years since our first trs application.

Also we had a top up in 2006 for which we will receive trs untill 2013 on that top up value alone.

I was told that my TRS would be suspended and that i didn't need to do anything i.e contact the bank or revenue and that the lender would forward the mortgage info to Revenue for reinstatement.

Also not to expect anything to return to normal until possibly early July

Hope this helps

But did you not cease to be a first time buyer when you moved house in 2005??? Did you not become a second time buyer at that juncture and lose your entitlement to tax relief???

Darragh29

Just up on RTE.ie... 57,000 people will lose their interest relief permanently tomorrow...

http://www.rte.ie/news/2009/0430/mortgage.html

Also, relief will be suspended for 321,000 of the 562,000 of the people who currently receive it. Of the 321,000 people who will have their mortgage interest relief suspended tomorrow, 57,000 people will no longer receive it.

As for what will happen to the other 264,000 people who will have their relief suspended tomorrow but may at some point in time in the future, possibly have it restored, this'll be fun!

BroomBurner

I'm foreseeing a lot of cheques written out by Revenue in the future...

My sympathies are also with the frontline civil servants in Revenue who will have to bare the brunt of this mess.

Darragh29

BroomBurner wrote: »

I'm foreseeing a lot of cheques written out by Revenue in the future...

My sympathies are also with the frontline civil servants in Revenue who will have to bare the brunt of this mess.

You get what you vote for.

cd27

There is a real case for helping out people who bought properties at the height of the boom (2002 -2007) but to say that the government should be involved in encouraging property investment is mad. That's what mortgage interest relief does, it encourages irresponsible behaviour and joe taxpayer is supposed to come to the rescue.

Far better to let the market correct, we have too many houses and need to invest in productive outlets. This is what the free market is telling us but others think governments should choose worthy groups and give them money at the expense of others...peculiarly fianna fail me thinks.

This State is on the road to ruin with high spending on this, that and every other group you can think of...it's crazy.

http://libertyireland.wordpress.com/2009/04/27/time-for-a-strike/

Darragh29

cd27 wrote: »

There is a real case for helping out people who bought properties at the height of the boom (2002 -2007) but to say that the government should be involved in encouraging property investment is mad. That's what mortgage interest relief does, it encourages irresponsible behaviour and joe taxpayer is supposed to come to the rescue.

Far better to let the market correct, we have too many houses and need to invest in productive outlets. This is what the free market is telling us but others think governments should choose worthy groups and give them money at the expense of others...peculiarly fianna fail me thinks.

This State is on the road to ruin with high spending on this, that and every other group you can think of...it's crazy.

http://libertyireland.wordpress.com/2009/04/27/time-for-a-strike/

Mortgage interest relief doesn't encourage irresponsible behaviour when it is only available to people who are buying a house to live in. When it is made available to apes who are hoovering up real estate just so they can have more than their neighbour, then yes, I agree, it becomes a part of the problem.

cd27

So being given extra money by the government to make your mortgage cheaper doesn't allow you to get a bigger mortgage and bid more for a property...hmmm....talk about defying the laws of maths.

Sounds like you're in total denial...maybe the taxpayer should have to contribute towards your car, your bike, your holiday as well. Gimme a break.

High tax and spending in this country is out of control. We need to get spending under control fast. Hopefully the bond markets will cut this high spending, high taxing and high borrowing government off from their reckless and irresponsible ways. Once and for all.

The Corinthian

Darragh29 wrote: »

And of course he conveniently forgot about the small little matter of our INSANELY PRICED PROPERTY MARKET, which Fianna Fail encouraged though tax reliefs for builders and developers, against the best advice of everyone. Low interest rates are only worth something if you didn't have to pay over the odds for a roof over your head in this country if you bought during the last ten years.

I take it Fianna Fail forced all you lemmings to buy at said insane prices too?

dan_d

Although I think I'll be able to keep my interest relief straight off, I can safely say that I am absolutely horrified at this. FF need to get out now.What else have they brought in that we are only going to realise in the next few months? I never voted for them, and I didn't buy a house during the boom.What does it take to force them out?We are only paying all this money to finance the salaries of the "top" civil servants, none of us are going to derive any benefit from it whatsoever either directly or indirectly.I think it's time we all said enough.We just don't have the money anymore to keep pouring into the public service wage bill and associated black holes. When are they going to just stand up and tell people that?We can't afford it, bottom line.Deal with it now, not when there's absolutely nothing left.We are making complete fools of ourselves as a country.

BroomBurner

Darragh29 wrote: »

You get what you vote for.

What? Sorry, what now? I expressed my sympathy with the frontline civil servants that have to carry out the legislation that the government enact, and that's your comment? Why bother comment on that at all? Do you know for a fact that every civil servant in Revenue voted Fianna Fáil? That's a massive, sweeping generalisation to make, is it not?

I can understand your terse response to the government, but I can't understand the context of your above statement in relation to my post.

dvpower

cd27 wrote: »

There is a real case for helping out people who bought properties at the height of the boom (2002 -2007) but to say that the government should be involved in encouraging property investment is mad. That's what mortgage interest relief does, it encourages irresponsible behaviour and joe taxpayer is supposed to come to the rescue.

How does this help people who bought at the height of the boom? For those people there is no change in regard to mortgage interest relief; they will still get it as before.

ardmacha

There is altogether too much fuss about this. The government changed mortgage relief so that it was only available to people who bought at the height of the boom and who presumably still have big mortgages. This was a reasonable change in the circumstances. The revenue are inevitably busy as there have been several changes in taxation in recent times and they are not allowed hire more staff. In some cases the revenue cannot determine whether people are within the 7 years or not so they will have to wait for their relief for a month or two until it can be sorted. Yes people will have to pay more in the meantime but money has to be collected, if all you have to put up is paying tax for a month or two to be then refunded later then things could be worse.

cd27

You really would have to wonder about all the hype about this.

dan d says: "Although I think I'll be able to keep my interest relief straight off, I can safely say that I am absolutely horrified at this".

Given that interest rates are at record lows I'd say you've done quite well in the last while dan d. Anyway, if people think about this reasonably there is a happy middle ground that is far more just than the current system.

Think about it, we have a tax system where people pay higher taxes on higher income but then we give it back in the form of rental property relief, pension reliefs, mortgage interest relief, medical fee relief…and the list goes on and on… These reliefs are often available on higher tax rates and are thus more beneficial to higher earners. So my question is, why not cut taxes and abolish all these reliefs once and for all, including child benefit, free fees and all the other middle class tax scams? Lower taxes will benefit all.

David McWilliams has what seems to be a reasonable solution for those now drowning in debt who bought houses in the last five years here. He says:

“One thing we could do immediately is that the State, as part of the recapitalisation of the banks, acts to help those thousands of first-time buyers who are now drowning in debt.

The State could demand, as a condition of recapitalisation, that the banks re-negotiate thousands of mortgages. The principal could be halved now so that the debtor continues to service the debt, but on a much lower amount. This way they don’t default and the bank does not end up with a bad loan. But the debtor doesn’t get away with it. It is not a debt write-off, it is just deferred.

Initially, the State and the bank take the hit on the level of loan deferral. They pay 50/50. But this deferral, which is the difference between the old principal and the new principal, goes to the State so that when these houses finally rise in value again in, let’s say, a decade, the upside goes to the State and a proportion to the bank” (David McWilliams, 28th Jan 2009).

Cutting off all the unjust tax reliefs would be a useful way of cutting spending, cutting taxes and getting the economy moving again. It would also get the government out of the business of central planning, i.e. deciding who gets what. Another word for that is socialism.

http://libertyireland.wordpress.com

BTE72

Darragh29 wrote: »

But did you not cease to be a first time buyer when you moved house in 2005??? Did you not become a second time buyer at that juncture and lose your entitlement to tax relief???

Whether your a 1'st or 2'nd time buyer your still entitled to trs.. There is a higher and lower band rate for the 2 groups. This was brought in last years budget

I am on the lower band.

BTE72

cd27 wrote: »

You really would have to wonder about all the hype about this.
.

http://libertyireland.wordpress.com

The tightening up on TRS is the government raising money to bail out the Rich Developers by saving the banks and buying there debt.

How does it happen..?

They raise taxes.
They cut benefits.
They create levies.
They send out the guards to recover money through fixed penalties.
They get rid of the mechanisms put in place to support families who are forced out to work because they have large mortgages and debt. All of which were freely encouraged by the same government during the good times.
And many more things i'm sure.

The Trs being cut is a big deal to me.. Another €78 per month poorer ontop of another €46 a fortnight poorer with a levy. And also you have to remember about low interest rates that some people are locked in on fixed rates for long terms so they are really screwed.


What is point in solely providing money to to help SME's pay their suppliers and the staff costs..? Starving the consumer of cash so we are less inclined or just can't go out to the shops at the weekend for a shopping spree!

The consumer is being starved of cash to spend.. so small businesses will still suffer.