€1.5 Billion tax hikes

Dannyboy83

Of the €6 billion budget:
A) €4.5bn will be made up of spending cuts,
The other €1.5bn in tax hikes.
C) Department of Finance believes (hopes) 100,000 people will emigrate over the next four years

Doesn't €1.5 billion seem like a ridiculous figure to hike tax by?
I would have thought cuts should be 6 billion by themselves.

Interested to hear where you believe the 1.5 Billion in tax hikes will come from

Riskymove

Dannyboy83 wrote: »

Of the €6 billion budget:
A) €4.5bn will be made up of spending cuts,

€1bn is capital apparantly so its €3.5bn in current spending

Doesn't €1.5 billion seem like a ridiculous figure to hike tax by?

well apart from the obvious that we are in a ridiculous situation!!

Interested to hear where you believe the 1.5 Billion in tax hikes will come from

widening tax net almost certainly

excise duties etc

ardmacha

Doesn't €1.5 billion seem like a ridiculous figure to hike tax by?

Irish tax take is relatively low proportion of GNP, and the country is broke and so it seems to make sense to raise it.

gurramok

As i've said countless times over the years, if they hike taxes too much, there will be no recovery. Suppose it depends where that 1.5bn tax hike will come from.

On 3.5bn of current spending, this is the big one to watch. Will some areas of the holier than thou welfare be touched?

100,000 to emigrate, yeh there's the solution to not creating jobs. Export the people :mad:

skelliser

Dannyboy83 wrote: »

Department of Finance believes (hopes) 100,000 people will emigrate over the next four years

Typical fianna fail response to a crisis, let the best and smartest leave as opposed to fighting tooth and nail to keep every single job they can.

Scum!

Dannyboy83

Riskymove wrote: »

€1bn is capital apparantly so its €3.5bn in current spending

That's even more embarrassing tbh.

well apart from the obvious that we are in a ridiculous situation!!

No doubt, but I meant to emphasise the fact that the reduction in current spending was only €4.5 billion............until you pointed out that it's actually only €3.5bn

I doubt that is going to have the desired effect on bond yields/rates!

widening tax net almost certainly

excise duties etc

Had a thread about the specifics recently:
http://www.boards.ie/vbulletin/showthread.php?t=2056067328

What did the 1% income levy yield?
Would be handy to compare against.

Gurgle

Dannyboy83 wrote: »

Doesn't €1.5 billion seem like a ridiculous figure to hike tax by?

~ 2 million people working in the country, average of €62.50 per month in extra taxes will cover that €1.5 billion.

So no, not ridiculous at all.

Dannyboy83

Gurgle wrote: »

~ 2 million people working in the country, average of €62.50 per month in extra taxes will cover that €1.5 billion.

So no, not ridiculous at all.

OK, Thanks.

Last I had heard, the entire take on income tax was only 11billion for 2009, so I was assuming it was going to be much more dramatic.

Sleepy

Until you consider that less than half of those 2 million workers will be asked to pay extra tax...

fat__tony

Gurgle wrote: »

~ 2 million people working in the country, average of €62.50 per month in extra taxes will cover that €1.5 billion.

So no, not ridiculous at all.

There are not 2 million people working, the figure is actually 1.85 million.

Giblet

I fully expect a 100 euro to be taken out of my pocket a month.

rumour

fat__tony wrote: »

There are not 2 million people working, the figure is actually 1.85 million.

Yes an only approx 900,000 pay tax currently. So cough up an extra €140 a month. And that will rise as net job creation is still over optimistic.

ardmacha

~ 2 million people working in the country, average of €62.50 per month in extra taxes will cover that €1.5 billion.

Some of the tax will also be payable be retired persons, the special tax reliefs for such will surely not survive. So maybe €50/month, or about the price of cigarettes for one week for a smoker.

Yes an only approx 900,000 pay tax currently.

This figure will surely rise and even these folks will have to fork for extra duty on diesel and the like.

Smiegal

Gurgle wrote: »

~ 2 million people working in the country, average of €62.50 per month in extra taxes will cover that €1.5 billion.

So no, not ridiculous at all.

Are we all assuming here that the only tax hike will come in one form that is income tax?? I severly doubt it. Not least because if they go down that road they will only further promote an already flourishing black economy.

I'd imagine that they will collect this €1.5 bn partly by income tax but also from new scources such as the much talked about water charges. Also since this is a four year plan I think we can expect to see both extra tolls and hikes at some of the existing tolls... Lots of ideas to pick from Mr. Snips menu...

NinjaTruncs

skelliser wrote: »

Typical fianna fail response to a crisis, let the best and smartest leave as opposed to fighting tooth and nail to keep every single job they can.

Scum!

Not true, a typical FF responces would be to throw money at people and pay them to leave the country, but that's how we got here.

fat__tony

NinjaTruncs wrote: »

Not true, a typical FF responces would be to throw money at people and pay them to leave the country, but that's how we got here.

I'm off to Toronto next week, I wonder will they give me a few bob for my trip.

Smiegal

fat__tony wrote: »

I'm off to Toronto next week, I wonder will they give me a few bob for my trip.

Do you have to be emigrating?? Always wanted to visit NY... But only for a holiday... I'm sure even Michael O'Leary would actually support such a Government Inititive....

fat__tony

Smiegal wrote: »

Do you have to be emigrating?? Always wanted to visit NY... But only for a holiday... I'm sure even Michael O'Leary would actually support such a Government Inititive....

Actually I probably could stay and I've had a couple of offers of jobs (3 month contracts mostly) but I'm looking for some stability and growth in my career (sustainablility consulting engineer) and given a choice between the above options and a full-time position in Toronto, it's an easy decision to make to be honest.

So unlike some people, I do have choices but I'm concerned about the stability of this country and it's labour market.

lmimmfn

so 1.5billion this year in tax hikes, we can only presume it will be the same in the coming years.
Seeing as 15billion needs to be cut in total, and this budget is only for 6 billion, means we'll probably be paying 4 billion more per year in taxes in 2015( if we are lucky ), i dont think thats too bad, but based on the 3billion increases in taxes April 2009 and how that affected people, but if its a lot more than 4 billion it will completely destroy the economy( what is left of it ).

Gurgle

lmimmfn wrote: »

Seeing as 15billion needs to be cut in total, and this budget is only for 6 billion, means we'll probably be paying 4 billion more per year in taxes in 2015( if we are lucky )

In theory (if we believe the current set of figures) this €6bn will improve our credit rating and saves us up to another €3bn next year in interest payments. We're also hopefully over the worst of writing ridiculously large cheques for banks which accounts for a fair chunk of the €15bn deficit for 2010.

This €6bn should be the cuts & tax increases over and done with. The next few years are about re-structuring every department to provide the services we need, and making some kind of effort to create jobs.

johnboy_123

Gurgle wrote: »

In theory (if we believe the current set of figures) this €6bn will improve our credit rating and saves us up to another €3bn next year in interest payments. We're also hopefully over the worst of writing ridiculously large cheques for banks which accounts for a fair chunk of the €15bn deficit for 2010.

This €6bn should be the cuts & tax increases over and done with. The next few years are about re-structuring every department to provide the services we need, and making some kind of effort to create jobs.

Tell that to the Unions and Government...a blind man can see what needs to be done but this current shower with there social partnership has tied up everything that needs to be cut and to add to it the Green party has now told the current gov they cannot touch pensions so the people working and on the scratch are the ones who are going to be kicked in the shins yet again

Dannyboy83

After reading the latest article by Morgan Kelly, i don't think it really matters anymore.

Even if we had the cuts that we needed, the country is trapped now.
There is no way out for Ireland now.

thebman

6.1 today, the figure of 9 billion to actually be able to go back to the markets being mentioned.