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Thread: John Bruton: Reduce youth unemployment through payroll tax cuts

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    John Bruton: Reduce youth unemployment through payroll tax cuts

    On Newstalk Radio this evening in an interview with George Hook,former Taoiseach John Bruton advocated a cut in payroll taxes in order to reduce very high youth unemployment among workers in their late teens and early twenties.

    In my opinion, this is a no brainer given that payroll taxes on both employers and employees are a direct tax on job creation and deter employers from recruiting. The tax cuts on payroll potentially could pay for themselves by generating employment and tax generating economic growth.

    He also advocates that government departments should become active in offering internships to young people to enable them to get job experience.

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    Politics.ie Regular wombat's Avatar
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    Quote Originally Posted by patslatt View Post
    In my opinion, this is a no brainer given that payroll taxes on both employers and employees are a direct tax on job creation and deter employers from recruiting. ....
    He also advocates that government departments should become active in offering internships to young people to enable them to get job experience.
    I have never understood the justification for employers' PRSI. The idea of bringing young people into the civil service to prepare them for work in the private sector is daft.

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    Quote Originally Posted by patslatt View Post
    On Newstalk Radio this evening in an interview with George Hook,former Taoiseach John Bruton advocated a cut in payroll taxes in order to reduce very high youth unemployment among workers in their late teens and early twenties.

    In my opinion, this is a no brainer given that payroll taxes on both employers and employees are a direct tax on job creation and deter employers from recruiting. The tax cuts on payroll potentially could pay for themselves by generating employment and tax generating economic growth.

    He also advocates that government departments should become active in offering internships to young people to enable them to get job experience.
    I would agree with all of the above.

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    Agreed. Should have been done 12 months ago.

    +1
    "The fact that some posters here are better informed than a lot of our political reps, on economic matters, scares the bejesus out of them." limericklady

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    Quote Originally Posted by patslatt View Post
    On Newstalk Radio this evening in an interview with George Hook,former Taoiseach John Bruton advocated a cut in payroll taxes in order to reduce very high youth unemployment among workers in their late teens and early twenties.
    A better option is the reduce the obscenely high welfare that unemployed people get vs. other eurozone countries.

    People on minimum wage pay virtually no tax at all here, pay nothing for healthcare, for education. It's entirely dumped on the middle-income earners, most of whom can't afford to support their own familes without another two familes of unemployed people.

    People on €20k/year have to start paying tax like they would in Germany. In Ireland, it's aroudn 6%, in Germany, it's closer to 25% at that salary.

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    Politics.ie Regular adamirer's Avatar
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    Quote Originally Posted by wombat View Post
    I have never understood the justification for employers' PRSI. The idea of bringing young people into the civil service to prepare them for work in the private sector is daft.
    Why so? I mean, as a PS employee, it would be seena s a threat... but that aside...

    Contrary to what some here think, and I've worked in both private and public sector, the basics arent that different. You learn office skills, adminstration, IT skills, a formalised work setting...

    It would take a bit of a culture change, but personally I support the idea - its important our fresh out of college/school citizens get used to usiong someof their skills and are not left to rot until such time as the economy turns around... that rot and a culture of dependance can set in very fast.

    Personally, i'd like to see a decent premium paid to certain unemplyed people in return for community/local authority work - improving roads etc.

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    Politics.ie Regular wombat's Avatar
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    Quote Originally Posted by adamirer View Post
    Contrary to what some here think, and I've worked in both private and public sector, the basics arent that different. You learn office skills, adminstration, IT skills, a formalised work setting...
    Personal responsibility for your decisions?

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    Quote Originally Posted by jimmyfour View Post
    A better option is the reduce the obscenely high welfare that unemployed people get vs. other eurozone countries.

    People on minimum wage pay virtually no tax at all here, pay nothing for healthcare, for education. It's entirely dumped on the middle-income earners, most of whom can't afford to support their own familes without another two familes of unemployed people.

    People on €20k/year have to start paying tax like they would in Germany. In Ireland, it's aroudn 6%, in Germany, it's closer to 25% at that salary.
    Someone earning €352 per week for a 37.5 hr wk (€9.39 per hour, well above minimum rate) will only pay €7.04 in income levy, no prsi and no tax with the standard tax credits and cut off. The employer will pay €29.92 employers prsi.

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    Quote Originally Posted by jimmyfour View Post
    A better option is the reduce the obscenely high welfare that unemployed people get vs. other eurozone countries.

    People on minimum wage pay virtually no tax at all here, pay nothing for healthcare, for education. It's entirely dumped on the middle-income earners, most of whom can't afford to support their own familes without another two familes of unemployed people.

    People on €20k/year have to start paying tax like they would in Germany. In Ireland, it's aroudn 6%, in Germany, it's closer to 25% at that salary.
    Have a look at this

    http://www.eapn.ie/documents/1_Socia...n%20Europe.pdf

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    Quote Originally Posted by wombat View Post
    Personal responsibility for your decisions?
    What about a finite budget?

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