The €22bn hole

[sharper]

Well that is just wrong.

If I earn €500 a week from my job and give you €100 of which you give me back €20 is my income €520 a week or €500?

[Watcher1]

Tool. The rate for the job is €100,000 not €60,000 and tax allowances will vary from one emplyee to another.
What you are suggesting is that the state massage figures and operate in a different way to the rest of the economy. Either way the PS worker is paying tax ans he/she is receiving a net figure as opposed to the gross rate for the job.
Aside from this and as pointed out elsewhere, the cost of the Public Service would be presented at a significantly lower figure, which of course would be false and would not impress in the least, foriegn investors etc. Do you fail to to understand the logic of that?

They do that anyway. Where have you been these last few years?

[Jock_the_Waster]

Or taxes paid by PS workers are in fact a contribution to the net tax figure and you cant spin your way out of your attempt at showing it otherwise.

FAIL - you are wrong again KD

[Conor]

FAIL - you are wrong again KD

If you're making a claim like that, the polite thing to do would be to explain why he's wrong. If you can.

[Jock_the_Waster]

If you're making a claim like that, the polite thing to do would be to explain why he's wrong. If you can.

follow the thread.

[Watcher1]

If I earn €500 a week from my job and give you €100 of which you give me back €20 is my income €520 a week or €500?

What I was saying was wrong was the suggestion that the spending by PS workers does not account for economic actiuvity or expansion etc. When anyone buys goods and services that creates, actually, that IS demand which contributes to employment in the productive sector.

[Conor]

follow the thread.

Yes, I have. And...?

[sharper]

What I was saying was wrong was the suggestion that the spending by PS workers does not account for economic actiuvity or expansion etc. When anyone buys goods and services that creates, actually, that IS demand which contributes to employment in the productive sector.

Certainly however it's not a net gain for the government unless the money is being spent in a fashion which lends itself to growth e.g. if you build a road and that road leads to greater economic activity you make a net gain.

Spending money on salaries does not lead to a net gain for the government. In fact it's almost always going to be a loss to due to the nature of our economy - some of that money will be spent on exports or leave the country in some other fashion.

The arguments put forward by advocates here suggest the government can spend money arbitrarily.

[sparkey321]

FAIL - you are wrong again KD

Kevin is correct.

It does in fact add to the net tax figure.

Say a company pays 100K in corporation tax.

The state then uses that to pay a public sector worker. That public sector worker then pays 20K tax.

The total net tax take is now 120K

What you are you are talking about is different.

Look at it like the Irish economy. Manufacturing and selling a product internally is recycling money or moving it around.

Manufacturing and exporting a product is creating new money.

The Public Sector are the domestic market and the Private sector taxes are the imports.

[Jock_the_Waster]

Kevin is correct.

It does in fact add to the net tax figure.

Say a company pays 100K in corporation tax.

The state then uses that to pay a public sector worker. That public sector worker then pays 20K tax.

The total net tax take is now 120K

What you are you are talking about is different.

Look at it like the Irish economy. Manufacturing and selling a product internally is recycling money or moving it around.

Manufacturing and exporting a product is creating new money.

The Public Sector are the domestic market and the Private sector taxes are the imports.

ah, the old mushroom trick

there is still only 100k in the pot

there is a diff between generated wealth and recirculated wealth

you are either baking the pie or eating the pie