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Weighting of Budget 2011 Adjustments??

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  • 16-11-2010 2:12am
    #1
    Niall81
    Registered Users Posts: 1 ✭


    Hi,

    We are all well aware of the amount of our adjustment, €6 Billion this year, but what split between cuts in expenditure and increased taxes do you think would work?

    I believe a 30% cut in spending, with a 70% increase in taxes i.e. €1.8 billion and €4.2 Billion We have seen that the savings rate has jumped recently, and we are "told" that we live in a low tax society so i guess there is more scope here than to reduce expenditure. Obviously the weighting is going to have an influence on the economy's performance next year, what would you think would work?
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    #2
    oppenheimer1
    Closed Accounts Posts: 6,084 ✭✭✭oppenheimer1


    The weighting has been released, its 4:1 cuts to tax rises. FG agree with this strategy while Lab think the 6bn is too much for one and believe in a 1:1 ratio of cuts vs tax rises.


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    #3
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,478 Mod ✭✭✭✭johnnyskeleton


    I wonder if they will stick to that. After all, increasing taxes is a relatively easy political choice but bad for the economy.

    FF don't exactly have a good track record of doing what is good for the economy but which is politicially unpopular (despite their talk of tough decisions etc).


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    #4
    rumour
    Closed Accounts Posts: 836 ✭✭✭rumour


    oppenheimer1 wrote: »
    The weighting has been released, its 4:1 cuts to tax rises. FG agree with this strategy while Lab think the 6bn is too much for one and believe in a 1:1 ratio of cuts vs tax rises.

    Any chance of a link to the release? Curious about this one.


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    #5
    Denerick
    Banned (with Prison Access) Posts: 6,488 ✭✭✭Denerick


    In times of crisis its better to cut spending than raise revenue. Raising taxes in a period of depression may only result in less taxes been brought in - or if you like, it will have a depressive effect overall on revenue streams. Ireland's state has an enormous amount of fat it can cut - built up over years of booming profligacy. If the government actually had balls it could cut in such a way that would not harm the average taxpayer. But of course it won't. Expect short sighted cuts in school buildings and university funding whilst public sector workers and pensioners get off scott free.


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    #6
    Max Power1
    Closed Accounts Posts: 10,272 ✭✭✭✭Max Power1


    Niall81 wrote: »
    Hi,

    We are all well aware of the amount of our adjustment, €6 Billion this year, but what split between cuts in expenditure and increased taxes do you think would work?

    I believe a 30% cut in spending, with a 70% increase in taxes i.e. €1.8 billion and €4.2 Billion We have seen that the savings rate has jumped recently, and we are "told" that we live in a low tax society so i guess there is more scope here than to reduce expenditure. Obviously the weighting is going to have an influence on the economy's performance next year, what would you think would work?
    Good god I hope thats proven wildly innaccurate!

    Talk about killing the tax intake! It would make it worthwhile for more people to not work and be on the dole than it already is!


    Edited to add: We should be cutting frivolous expenditure, like our over the top rates of JSA and non contributory pensions.


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    #7
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,478 Mod ✭✭✭✭johnnyskeleton


    Denerick wrote: »
    In times of crisis its better to cut spending than raise revenue. Raising taxes in a period of depression may only result in less taxes been brought in - or if you like, it will have a depressive effect overall on revenue streams. Ireland's state has an enormous amount of fat it can cut - built up over years of booming profligacy. If the government actually had balls it could cut in such a way that would not harm the average taxpayer. But of course it won't. Expect short sighted cuts in school buildings and university funding whilst public sector workers and pensioners get off scott free.

    Well the time to cut the waste was in the period 1997-2007. Yet they did the opposite, they increased the waste. So even if they bring spending back to the level it was when FF took office, there is still waste to cut.


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    #8
    ISAW
    Banned (with Prison Access) Posts: 7,142 ✭✭✭ISAW


    johnnyskeleton wrote: »
    Well the time to cut the waste was in the period 1997-2007. Yet they did the opposite, they increased the waste. So even if they bring spending back to the level it was when FF took office, there is still waste to cut.

    Not really. If all public spending ( particularly pay) was restored to 1997 levels I think we would probably not even need tax increases.


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    #9
    ISAW
    Banned (with Prison Access) Posts: 7,142 ✭✭✭ISAW


    rumour wrote: »
    Any chance of a link to the release? Curious about this one.
    i did read an interview with Leo Varadkar where he mentioned FG wanting a four to one and Lab
    our wanting parity and maybe they could meet at two or three to one.


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    #10
    skstretch
    Registered Users Posts: 153 ✭✭skstretch


    ISAW wrote: »
    Not really. If all public spending ( particularly pay) was restored to 1997 levels I think we would probably not even need tax increases.

    that would really help the public sector pay back there mortgages nd loans!!!


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