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Posts tagged ‘Budget’

Budget 2014 Missing the Targets:

Over at the Blog of Dr. Constantine Gurdgiev  I have just read his excellent analyses on the current situtiation regarding the latest budget from our hapless gombeens in the Government. I do hasten to add that I do not agree with everything he says but it is never the less an excellent piece!

Recent events have led to a significant reframing of the Budget 2014. With these, the Government is now actively signaling a more accommodative stance on next year’s cuts. Alas, the good news end there and the bad news begin. Any easing on austerity in 2014 will be unlikely to produce a material improvement in household budgets. In return, the Government will be placing huge hopes on robust growth returning in 2014. If this fails to materialise, lower austerity today will spell more pain in 2015. Like a dysfunctional alcoholic, unable to stop binging at closing time, we ignore tomorrow’s hangover.

full article at source:http://trueeconomics.blogspot.ie/

Comparison of Tax Proposals

 Val sent this in to us.

If a week is a long time in politics, the last few months have provided enough drama in economic and political life to last a lifetime – or maybe nine! Beginning with the arrival of the IMF in mid-November and the subsequent announcement of the National Recovery Plan, the economic spotlight has shifted to the Budget in December, the roller-coaster passage of the Finance Act through the Houses of the Oireachtas towards the end of January, and is now firmly focussed on a guessing game of the likely fiscal policy of the new Government.

This guessing game may not be that complicated. The €20bn of fiscal and spending adjustments contained National Recovery Plan formed a significant part of the discussions with the IMF and EU, and there are differing views on the room for manoeuvre any new Government may have in formulating their fiscal policy.

All of the political parties have published manifestos containing economic and fiscal proposals of greater or lesser detail, and we have summarised some key tax features

see PDF doc Here PwC 1

source: http://www.pwc.com/ie/2011irishelection/

Fianna Fail / Green’s new ‘dirty dozen’ in Budget

By Charlie Weston and Brendan Keenan

Thursday December 09 2010

THE Budget contained a number of measures that were little noticed when it was announced on Tuesday night.

Here are a ‘dirty dozen’ of the measures that proved to be a surprise, as they were not signalled in the four-year austerity plan.

Stamp duty

First-time buyers did not have to pay any stamp duty up to now. From yesterday they will have to shell out 1pc of the value of properties worth up to €1m.

This will mean an additional €3,000 on a property that sells for €300,000, according to Ronan O’ Driscoll at Savills Ireland.

Redundancy payments

Redundancy payments, apart from statutory redundancy amounts, will only be tax-free up to €200,000. For amounts above this the tax will be 20pc.

This is to discourage ‘golden parachutes’.

Medical cards

People with medical cards did not have to pay the income levy or the health levy up to now.

But the merging of these two levies into the universal social contribution (USC) will mean that people with a medical card, whose income is greater than €4,000, will pay the new charge, the Department of Finance confirmed. However, the spokesman added that state pensions may be excluded from this.

Pensions

Employers will have to pay 50pc PRSI on their employees’ contributions to a pension scheme. This is in addition to the application of PRSI and USC to the employees’ contributions themselves.

Childcare

Childcare provided by employers will now be treated as a benefit for the employee, who will pay income tax and PRSI on the value of the childcare, raising €6m a year for the Exchequer.

Previously, this facility was exempt from tax.

Start-ups

The three-year exemption from corporation tax for start-up companies is being extended to companies starting in 2011.

But the value of the relief will be limited to the amount of employer’s PRSI paid by the company on behalf of employees, which may mean no relief for one-person start-ups.

Gift tax

The amounts that can be given or left to relatives, tax free, are being reduced by 20pc. This is a significant change, raising €40m in a full year.

The new limit for a gift or inheritance to a child is €332,804, and €33,280 for a sibling or lineal descendant.

Capital gains tax

Capital gains tax (CGT) was left unchanged at 25pc. In the National Recovery Plan, it was suggested that a threshold beneath which tax was not paid would be index linked to inflation allowing it to rise each year. This system operated in the 1980s. However there was no mention of the indexation of gains against inflation in Tuesday’s budget.

Approved retirement funds

The annual ‘imputed’ distribution, or tax, applied to assets in an approved retirement fund at the end of each year goes from 3pc to 5pc, with effect from December 31 this year.

Rent relief

The tax credit available to those who rent out their own home drops from €400 to €320 for a single person. For a couple, the credit drops from €800 to €640.

Home-carer tax credit

For a spouse caring for children or a handicapped person, the carer tax credit – which is a tax free portion of income – drops from €900 a year to €810.

Car benefit in kind

The benefit in kind for those who have a company car will in future be based on the car’s level of CO2 emissions, with cars with lower emissions getting relief.

– Charlie Weston and Brendan Keenan

source http://www.independent.ie/national-news/budget/analysis-overview/the-dirty-dozen-tweaks-that-took-us-all-by-surprise-2454125.html

Irish Independent

The Poor Can’t Pay

Dear Machholz,
So the budget was just as bad as all the media leaks suggested. At least for the low paid, people with disabilities or those who have already lost their jobs. For the wealthy there was better news: no wealth tax, no tax on very high incomes; and certainly no action against those who caused the crisis. For those on welfare, a further €8 a week was cut from people on most payments. In a particular act of cruelty an extra €2 was cut from Supplementary Welfare Allowance – the payment designed as a safety net for the most vulnerable. This leaves them €520 worse off in a full year.
Children were not spared either. Last year, families on social welfare or low pay received compensatory changes in other payments to make up for Child Benefit cuts. This year they were just cut.
It was also a cowardly budget, full of nasty cuts that the Minister was not honest enough to include in his speech. And now they plan to rush it through the Dáil before TDs have a chance to talk to the voters – or engage with their consciences.
But it is not over yet.
We need to engage all those who will be unfairly hit by this budget and all those who are angry about its unfairness. We need to open the eyes of TDs before they vote.
Some TDs will shy away from voting against the budget because it will bring the Government down. We need to make them realize the strength of resistance to the welfare cuts. But even those who will vote for the welfare cuts might draw the line at voting for the cut in the Minimum Wage – this is not a budget measure and defeating it will not automatically lead to the Government falling.
There are three things you can do which can still make a difference.
– you can send an e-m ail to your local TD from The Poor Can’t Pay web-site
– you can phone one of the six Government TDs who pledged to protect the poor in ‘any way they can’
– you can sign the petition against the Minimum Wage cut on the ‘Claiming our Future’ web site.

Please do it now while it can still make a difference.

Yours sincerely,

Mike Allen
for

for The Poor Can’t Pay

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