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Posts tagged ‘Value added tax’

A SELF-EMPLOYED father-of-two not going to pay his taxes anymore

A SELF-EMPLOYED father-of-two has said he is not going to pay his taxes anymore and is prepared to go to jail over the issue.

Offaly man Patrick McGreal, 31, says he is no longer prepared to contribute to a system that he says is not working and claims that we pay some of the highest taxes in the world with the least return when it comes to healthcare and education.

“What’s the worst they can do to me? Bring me to court, probably heavily fine me, then I can’t pay the fine so they throw me in jail. But at the end of the day I don’t want my tax money being paid to the likes of bankers who did take a risk and who aren’t suffering,” he told TheJournal.ie

McGreal, who works as a courier selling farming produce around the country, said that at the end of the tax year he does not intend to file any tax returns and adds that he will avoid paying VAT wherever possible

full article at source: http://www.thejournal.ie/i-wont-pay-for-bankers-risk-taking-man-says-hell-stop-paying-tax-414069-Apr2012/

Comment:

We need more people to now start to cut out the state .Effectively stop the state getting tax from us , we also now need to start a boycott campaign  against the banks buy only what you need to survive do not buy any un-necessary items, stop buying German goods. Anything that will reduce the state’s ability to pay the interest on the private gambling debts   of these faceless gangsters, any money the state gets in taxes is now going to pay the gambling bondholders and the Deutsche Bank! Take you savings out of the Banks and put it into the post office or the credit unions. Stop having any business with the current Government Boycott all TD,s who support the current lying government. They have broken every promise they made to the Irish people and as such do not deserve any support in return. It’s time we the people show we are not going to take anymore of this crap from them. So let’s tell our Government TD,s we will boycott them until the stop supporting this government and stand with the people and stop this madness ,taking money from our services and paying back the private gambling debts of gangsters.

Hell no I will not pay, I will use every opportunity not to pay into the coffers of this corrupt government.   

“Higher VAT is not about Northern Ireland” (Ronan Lyons

Ronan Lyons has posted a new item, ‘Higher VAT is not about Northern Ireland, it’s about the Republic’ see below

Yesterday and today, Ireland’s Budget for 2012 is being announced. Very little will be a surprise, given that various Ministers have been leaking the long-list of proposed cuts over the past two months or so. It’s just a question of what made the short-list this year, and what will be postponed for future years.

We already know, through the Taoiseach’s State of the Nation address that, on the taxation side, there will be no change to the income taxation system but instead, VAT will increase. In fact, we knew this already as Ireland’s budgetary plans were, per the terms of the EUIMF loan, sent to those lending to us so they could be kept abreast of their borrower. Unfortunately, Ireland operates under a bizarre system of national budgeting, where the Minister of Finance is supposed to pull rabbits out of hats on Budget Day to the oohs and aahs of the media (and perhaps the public). So the Irish public was none too impressed to learn many of the details of the Budget via the German parliament.

full article at source:http://www.ronanlyons.com/2011/12/06/higher-vat-is-not-about-northern-ireland-its-about-the-republic/

comment:

Taxing people’s homes is double taxation and the continuous squeezing of the poorer in this country will only lead to social revolt!

This German imposed austerity is immoral, unjust and is illegal as the politicians have somehow decided that we the people of Ireland must pay back the private gambling debts of corrupt bankers, not only in Ireland but also bailout the disastrous gambling of the Deutsche Bank in Germany who are responsible for the entire financial meltdown in Europe along with their pals in the US Goldman Sacks. Irish men and woman died to have; independent Irish Republic .The current political masters in this country have abandoned the aspirations of that Irish proclamation of 1916. I charge them all with treason and any and all resistance to this Global market dictatorship is entirely legitimate.

We the people of Ireland are not responsible for this financial meltdown and the people that are responsible are busy dishing out austerity measures whilst at the same time they are rewarding their pals and insiders with cushy well paid jobs and perks.

It’s time to take back our country from the mouthpieces of the gangsters in Europe.

Hell no, we won’t pay.

Wake up Ireland how long more will you allow these leaches to suck you dry?

Noonan jobs initiative (citizens let down again! )

On the Jobs plan program the main planks seem to be,

* Initiate a long-term strategy to develop new markets in emerging economies;

    (Sounds like a new quango been set up (Jobs for insiders and friends of friends)

* Abolish the €3 per passenger travel tax as part of a deal with airlines to restore lost routes;

  (I think they would be better off paying every person that emigrates to stay away)

*15,000 places in work experience and educational opportunities for those who are out of     work; (I.E work for nothing)

* Cut the 13.5 per cent rate of VAT to 12 per cent up to end 2013;

 (lads, we are all broke except government workers that 1% wont amount to a hill of beans )

* Halve the lower 8.5 per cent rate of PRSI up to end 2013 on jobs paying up to €356 per   week;

* Reverse the €1 cut in the minimum wage, bringing it back to €8.65 per hour;

    (Will any of you sitting in the Dail work for even that??)   

* Implement initiatives in areas that will create employment in the domestic economy;

          (Can you be a bit more precise on that, lads?)

* Secure additional resources for the national housing energy retrofitting plan, as part of plans to phase out subsidies in this area by 2014;

(Don’t make me laugh by then most of us will have no homes because the banks will have most of the repossessed)  

* Expand eligibility for the back to education allowance;

This is the first good ideas I believe an educated person has a better chance of getting back into employment. But I would stress that emphases should be on technology  

* Accelerate capital works that are “shovel ready” and labour-intensive including schools and secondary roads.

Smacks of pouring money into developer buddies hands again lads!

full PDF  doc on the Jobs  initiative here: jobsinitiative

 In conclusion:

[Returning sustainability to the public finances is not just a matter of reducing expenditure and increasing or implementing new taxes, important though these are. Getting those who are out of work back to employment will, of course, be of great benefit to the public finances as it will reduce expenditure on unemployment payments and help boost the income tax yield, thereby benefitting both sides of the account. Giving consumers the confidence and encouragement to spend will also play an important role in this regard and these are the main aims of this Jobs Initiative]

The first sentence is blatantly stating that we are to expect hefty tax increases in the next budget. Expecting to get huge numbers of unemployed off the dole into new jobs is just wishful thinking without a radical new and daring incentive something along the lines of the American GI bill after the Second World War. Expecting a splurge of buying from the downtrodden taxpayers of the nation is demonstrating how out of touch this new government is only after a few weeks in office. Lads 1200 citizens are having their  power cut off  every week according to the ESB. Nobody in their right mind is going out spending, we don’t have anything to spend. With the first blatant attack on personal savings (pension levies) It won’t take too long before this government will be restricting the amount we have in our bank accounts, I take this hint and will take any savings out of any Irish Bank account and deposit it in an English, French or German bank if I were you now.       

Education is the Key to jobs growth and not government spin!  This is far too little and of no use to anybody over the age of 40.So all in all this is not worth getting worked up about its more of a photo opportunity .To tackle our crises we would need to spend 10 Billion over the next 4 years on re-educating the masses that are now unemployed, in the fields that are needed now, by the would be foreign investors and home-grown Technology, IT and chemical industries. This is where the demand is and for the foreseeable future. By robbing people who have saved and put something aside for their pensions in just outrageous .If this doesn’t get the people out on to the streets I suppose nothing will!

Points out of 10  

1 for a half-baked attempt

Who killed the electric car?

Barely a few hrs after the budget we see the prices at the pumps are rising and to-day I saw prices as high as 1.45 Euros per liter for petrol in Dublin and expect  we will see prices past 1.50 a liter in the new year! At this rate I must seriously consider loosing one of our cars .I found this on youtube and it makes you wonder! 

The bailout bill for the average Irish family at 4,300 euros.

  • Irish families each face 4,600 euro bailout bill
  • 

Internal strife: Herman van Rompuy, the Belgian President of the European Council, may have to address difficulties with his own country’s worsening economic outlook

New fears have been raised about the future of the Belgian economy after market traders pushed the cost of insuring the country’s debt to record levels.

The rising cost of Belgium’s debt is now 100 per cent of annual national income, raising concerns the country could join Portugal, Spain and Italy on the growing list of countries that could be heading for a financial crisis.

Traders are also worried Belgium’s broken political system, which has left it without a government since April, is distracting it from  tackling its worsening economic outlook.

The government of Yves Leterme collapsed in April after he failed to find a resolution to a three-year internal dispute between the country’s Flemings and Walloons.

His failure has provoked fears Herman van Rompuy, the Belgian President of the European Council, may have to step in to address difficulties with his own country’s worsening economic outlook.

The eurozone was been dealt a further blow yesterday after Portuguese and Spanish borrowing costs rose sharply as investors worried that their debt levels will prove unsustainable, putting them next in line for a European bailout.

As a major public sector strike in Portugal further undermined market confidence there, the interest rate on the government’s 10-year bonds broke through the 7 per cent barrier yesterday. The 10-year Spanish bonds rose to 5.08 per cent from 4.91 per cent at the start of trading.

While both countries are not at any immediate risk of bankruptcy, those rates are making their already heavy debt loads more expensive to finance. The higher cost to roll over debt is eating away at any progress the governments make in their public finances through austerity measures.

The yields have been moving higher since Ireland accepted an EU-IMF bailout this week because investors demand a higher return for lending to countries with shaky finances.

Despite the growing unease over the success of the Irish bailout and fears that Portugal or Spain might need help soon, a senior official said today the crisis will not lead to the breakup of the euro zone.

European Financial Stability Fund chief Klaus Regling said: ‘There is zero danger. It’s inconceivable that the euro would collapse.’

Mr Regling, who has overseen the eurozone’s 440 billion euro bailout fund since it was created last spring, said Ireland was not suffering from rampant speculation, but rather from a lack of buyers for its bonds.

‘We’re experiencing a buyer’s strike, not wild speculation’, Regling said. ‘And there’s some uncertainty around whether the crisis will spread to other countries.’

Yesterday Ireland embarked on one of most draconian austerity programmes of any developed economy since the Second World War.

Prime minister Brian Cowen unveiled plans to slash public spending by 20 per cent over the next four years to tackle the Republic’s soaring budget deficit.

The harsh medicine will include a 12 per cent cut in the minimum wage, nearly 25,000 civil service job losses and a punishing rise in the VAT and income tax rates.

Fianna Fail and the Greens launched a four-year, 15billion euro savings blueprint – equivalent to over 8,300 euro per household.

As Ireland battled to avoid national bankruptcy, estimates put the bailout bill for the average Irish family at 4,300 euros.

Painful cuts: Ireland's prime minister Brian Cowen, right, and finance minister Brian Lenihan announce the National Recovery Plan in Dublin todayPainful
cuts: Ireland’s prime minister Brian Cowen, right, and finance minister Brian Lenihan announce the National Recovery Plan in Dublin today

Ireland’s prime minister Brian Cowen, who is resisting calls to resign over the financial crisis, yesterday warned ‘no one could be sheltered’ from the cuts.

He rejected claims he will stand down after the 2011 Budget is unveiled in December to allow a new leader to fight the imminent general election.

Mr Cowen likened the agreed bailout to an overdraft as negotiations on exactly how the money can be drawn out continue.

He said in the Dail: ‘We’re talking about here, an overdraft, if you like. It’s a contingency, it’s available to us as required.’

Measures being brought in include cutting social welfare by three billion euro (£2.5bn), reducing the public sector pay bill by 1.2 billion euro (£1bn) and increasing VAT by two per cent.

The credit ratings agency Standard & Poor’s has lowered its long-term rating on Ireland’s financial reliability by two notches to A from AA- and warned that there could be further downgrades

The four-year plan includes:

  • The minimum wage being cut by one euro to 7.65 euro (£6.48);
  • VAT increasing one per cent to 22 per cent in 2013 and to 23 per cent in 2014;
  • Public sector workforce being cut by 24,750, bringing levels back to 2005 levels;
  • An increase in student fees;
  • Water metering brought in by 2014;
  • Carbon tax charges doubling to 30 euro (£25) a tonne

However, the plan does not touch the country’s ultra-low corporate tax rate – which contributed heavily to the so-called ‘Celtic Tiger’ economic boom, by attracting companies to the country.

Despite pressure from Germany and France, Mr Cowen is retaining his country’s controversial 12.5 per cent rate of corporation tax, which has attracted a slew of U.S. multinationals to Ireland’s shores over recent years.

The severe cuts equate to more than ten per cent of Ireland’s national income, compared with Britain’s plan to reduce public spending by about five per cent of output.Ireland’s ‘day of reckoning’ came as talks continued between the International Monetary Fund and the EU over a £72 billion bailout.

Britain will contribute at least £7 billion to the rescue.The Irish government has had to go cap-in-hand to the EU after escalating concerns over its finances threatened to capsize its crippled banking system.

The country’s budget deficit is set to hit 32 per cent of national output this year after Dublin was forced to pump some £42billion into its stricken lenders.

Banking and economic experts across Ireland and Europe have raised concerns in the last 24 hours that it might not solve the problem.

There are also worries in some circles of a sustained bank-run by fearful customers.

Irish banks have already seen £19billion in deposits leave the country this year

Read more: http://www.dailymail.co.uk/news/article-1332686/Debt-crisis-spreads-fears-mount-future-euro.html#ixzz16IZwnwzo

The Four Year Plan for running the country. Now can we get a Four Year Plan for running the banks.

Ireland’s Taoiseach (Prime Minister) Bertie Ah...

Image via Wikipedia

 November 25, 2010  NAMA |

 URL: http://wp.me/pNlCf-OY

By namawinelake |

 They could have called it the “Enda Kenny has no willy plan” or the “Bertie Ahern – unappreciated in his own lifetime plan” but they didn’t. They called it the “National Recovery Plan” and that’s what most media seemed self-compelled to call it yesterday and although it was being referred to as the more neutral “Four Year Plan” late last night, it seems that today we’re back to the more subjective moniker.

The Plan of course is our blueprint for getting our nation’s revenues back in equilibrium with its costs. During the boom years up to 2007, the nation’s coffers were bulging with tax receipts from the domestic construction boom, and its trickle down effect into practically all sections of the economy. And whilst the State did create a rainy day fund – the National Pension Reserve Fund (value today €25bn though some €11bn of that is earmarked for/invested in AIB/BoI) – the approach was, as articulated by our former Finance Minister Charlie McCreevy, “if we have it, we’ll spend it” and indeed we did – social welfare, state pensions, public sector headcount and salaries, capital programmes, reductions in tax – funding these rose in line with income.

Sadly the construction and property bubble burst cataclysmically and suddenly and so we’re left with an imbalance – some 12% of GDP this year and the Plan published yesterday maps out how we will get back to 3% by the end of 2014. It’s a major adjustment but it really just contains the bread-and-butter tools to adjust the levers of financing the day-to-day running of the State.

Calling it the “National Recovery Plan” was the first indication of partiality but that could be forgiven. References to “a small increase in GDP” in 2010 might seem trivial but in the government’s minds this marked a “turning of the corner” and “stabilisation”. It may well be that GDP does increase slightly in 2010 though the most recent ESRI forecast in October 2010 and a Reuters poll of economists a couple of weeks ago both put GDP in 2010 in negative territory (my own forecast is that the government will be right on this one). It was an unfortunate co-incidence that S&P downgraded the country’s credit rating yesterday and gave their own forecast for GDP in the next four years – “”nominal GDP would be “close to flat” over the next two years” and growing 2% in 2013. The anchor to the Plan is that we will see an average of 2.75% growth in GDP in the next four years – without such growth we’ll still have an estimated deficit:GDP of 7% in 2014. That is probably the shakiest assumption in the plan itself.

The measures outlined in the Plan can be debated. The usual advice for fiscal adjustments is that they be timely, efficient and fair. I noticed that many measures are being pushed out to 2012 and beyond (VAT, property tax, water charges) and I think the government is going to face a challenge in coming up with a €6bn adjustment in the 2011 Budget which will be debated in two weeks time in the Dail. There is a ruthless efficiency in levying a round €100 flat-rate tax on property and reducing the minimum wage by round €1 (not strictly part of the fiscal adjustment but an element of the plan as regards competitiveness) but efficiency was less evident in reductions in public sector wage costs – if the recent unfocussed €400m redundancy/early retirement scheme in the HSE is anything to go by, then we should be concerned at how further reductions in the cost of the public sector will be handled. “Fairness” is a tricky topic, though imposing the same property tax in 2012 on a €100,000 terrace in Tallaght as a €20m house on Shrewsbury Road doesn’t seem very fair though there is an indication that the tax will eventually become more progressive. Increases to VAT disproportionately affect the less well-off. Whilst it is clear that lowering the threshold at which tax becomes payable on wages from €18,300 to €15,300 will increase the tax burden at the lower level it wasn’t clear how salaries at higher levels would contribute on a progressive basis.

Overall, the four year plan didn’t strike me as particularly innovative. In terms of optics we’re likely to keep our Taoiseach as one of the Top 5 best paid heads of state in the world which doesn’t seem fair even if it’s a relatively tiny cost in the overall scheme of things and the impression given was that fundamental non-marginal reform of the public sector was to be avoided. Some changes flagged had the ring of being rushed about them – why a €1 change to the minimum wage, why a €100 property tax.

Quangos seem to have escaped scrutiny and there was no reference to privatizations (energy, transport, port and airport authorities). The competitiveness section seemed to lack detail on the comparisons used and I think some businesses will be skeptical at the conclusion that we are competitive in the cost of energy and communications.

However, the glaring omission from the four year plan was the ongoing cost of the banking crisis which frankly has the potential to render practically meaningless and farcical any debate about this fiscal adjustment because the exposures and landmines in the banking sector may be multiples of €15bn. Minister Lenihan yesterday seemed specific in saying the four year plan accounted for the situation in the banks as at the end of September 2010 – remember the Big Bang announcements intended to give certainty and finality to the cost of our bailouts. But has the outlook changed since September 30th?

It seems, from recent days, that AIB and BoI are to receive additional capital – the Financial Regulator said that this will be to “overcapitalize” the banks, others say that unprovisioned future losses could be another €20bn+ and will that additional €5.3bn flagged in the worst case scenario be needed for Anglo and EBS? How will the withdrawal of ECB emergency liquidity assistance affect our finances? How will the exceptional measures by our own Central Bank be reined in? In the four year plan interest on the national debt is put at €8.4bn in 2014 – but calculations on here yesterday put the interest estimate from €7bn (5% of €140bn) to €32bn (9% of €350bn) with a more central scenario (and arguably more realistic one) of €15bn (6% of €250bn). The difference essentially comes down to the banks.

So we have a four year plan for running the country – arguably it’s not great but it’s adequate in itself. The plan will be debated in the Dail (though not voted upon) and can apparently be changed by an incoming government in agreement with our rescuers in the EFSF/IMF. But without a four year plan for the banks, we’re essentially arguing over necessary minutiae but ignoring the potentially far bigger picture.

Source http://namawinelake.wordpress.com/

Budget 2011 update

STEVEN CARROLL

photo machholz

The State’s tax base is to be widened before 2014 to include people earning as little as €15,300 and income taxes will return to levels last seen in 2006, according to the National Recovery Plan.

VAT is to be increased by 2 per cent; a site valuation tax, eventually costing some €200 per year, is to be levied on some 1.8 million homes; and a range of reliefs and credits are to be curtailed or abolished as part of the taxation measures the Government expects to generate €5 billion between 2011 and 2014.

However, the 12.5 per cent corporation tax, which has come under fire from international competitors since talks on an EU/IMF aid package began, will not be changed.

Some 65 per cent of income tax adjustment will be delivered next year and the Government plan says direct income taxes would make up just 12 per cent of the €15 billion budgetary adjustment.

The plan says the amount of income tax paid in the State has been “eroded to an unsustainable level” and that the overall tax wedge (combined PAYE, PRSI and levies) on average earnings for a single individual will increase from its 2009 level of 28.6 per cent to 33.7 per cent in 2014.

The plan states that it is “not sustainable” to have 45 per cent of working people paying no income tax and that a 16.5 per cent reduction in the value of tax bands and credits will see the entry point for a single person to the PAYE system fall from €18,300 in 2010 to €15,300 by 2014.

It says the rate of VAT is to be increased by 1 per cent in both 2013 and 2014, which the plan says will increase yield by €620 million in a full year.

A site value tax, to be introduced in 2012, will cost households €100 per annum in its first year and is likely to rise to an average of €200 per household when a value-based addition is introduced in 2013. This is expected to be levied on 1.8 million homes and 700,000 areas of zoned land and should generate €530 million per year.

The plan proposes the doubling of the carbon tax from €15 to €30 per tonne by 2014 which would generate more than €300 million over the four years.

The measures in the plan will be the equivalent of a reduction of 16.5 per cent in the value of tax credits and bands which the Government believes will rebase the income tax system at approximately 2006 levels.

Rate of income tax relief on pension contributions is to fall from 41 to 34 per cent in 2012, to 27 per cent in 2013 and 20 per cent in 2014. This will give an annual reduction of €165 million or a cumulative reduction in pension tax expenditures of €700 million.

It proposes the abolition of 10 tax expenditures that will save €280 million in a full year. These include rent relief, relief on trade union subscriptions and income tax age credit for people aged 65 and over.

A further six measures, including artists income tax exemption and the tax-free status of ex-gratia payments and pension lump sums of more than €200,000, are to be curtailed saving a further €75 million.

Home loans taken out on or after January 1st, 2013, will no longer qualify for mortgage interest relief, which is to be abolished completely by 2018. This will generate full year savings of €485 million.

“Any acceleration of the withdrawal of interest relief would place unacceptable financial pressure on households with the highest risks of being in negative equity,” the plan states. “There will be no change to current arrangements.”

The plan states that the Government remains “steadfastly committed” to the retention of the 12.5 per cent corporate tax regime which it regards as a “cornerstone of industrial policy”.

Reliefs and exemptions from Capital Gains Tax, Capital Acquisitions Tax and Stamp Duty will be abolished or greatly restricted to ensure there is an adequate base for these taxes. The report says a cautious estimate is that these measures will yield €145 million in a full year.

Net pay for a single person earning €55,000 will be reduced by 4.8 per cent per annum (or €36 per week) by 2014.

Net pay for a married one income family on €55,000 will be reduced by €2,310 (€44 per week or 5.4 per cent).

For those making tax relieved pension contributions, net income will fall a further 2.5 per cent at this level in the private sector.
source http://www.irishtimes.com/newspaper/breaking/2010/1124/breaking32.html

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