Cowen to implement FG policy on Stamp Duty?

[Compound Fracture]

What's the betting that Cowen will implement FG's policy on Stamp Duty in the Budget this afternoon?

The Fine Gael Manifesto proposed:

1) Simplifying stamp duty rates by reducing the number of rates from 7 to 3. New rates of 0%, 5% and 9%

2) Making stamp duty fairer so that you only pay the higher rate on the portion of the price over each threshold and not on the entire purchase price. Under Fine Gael's proposals, the first €100,000 is zero rated, the next €350,000 is paid at 5% and the balance is charged at 9%.

Cowen denounced the FG plans from a height, saying they were "irresponsible in the extreme" and that the "exchequer would be the loser".

But what are the odds that Cowen will implement something similar today, as if he had never disagreed with Richard Bruton?

PS: You have to congratulate the Government Press Office on the skillful piece of manipulation they've pulled on our gullible, braindead media today. From 6am onwards the news has been dominated by "growing speculation" that Stamp Duty was going to be radically reformed. Speculation from whom exactly, other than anonymous Governmnet hacks and briefers?

This has been used to get the NCB/"loan" fiasco out of the news for at least one day, so naturally enough they would focus on stamp duty (a focal point of hysterical middle class/Sunday Independent greed) and not on health, low earners or any other boring crap like that

[905]

Shouldn't your thread have been about the things stamp duty is covering up then?

[returning officer]

Tumbleweed

(I hope Fine Gael get all the credit their deserve)

[MarD]

Compound fracture - reform of stamp duty isn't just for middle class/sunday indo's.

It should be reformed because it is a bad tax.
Most tax is on a value add basis, like VAT and income tax, one pays based on money you earn or money you have to purchase something. VAT is included in the sale price and you can get a car loan for the total cost of the car if you want.
Stamp Duty is a complete anomaly, it is a tax based on money the purchaser clearly doesn't have.
Almost all house purchasers are buying a property with a 20-30year mortgage. On top of this they have to factor in Stamp Duty, for which you can't directly get a loan so that there is an automatic state sponsored barrier to home ownership in Ireland. The hard earned savings go into paying a tax to get a mortgage. Unlike a car purchase where the VAT included price is factored into the resale value of a car, no such recoupable element is available in Stamp Duty.
It is a tax on families.
It is a tax on mobility.
It is a tax to make up for the ludicrous elimination of Rates by Haughey as a voter getter all those years ago.

Naturally Stamp Duty doesn't exercise the minds of anyone expect prospective house buyers but simply because it only affcets a minority deosn't mean it is justified. taxes are supposed to be equitable this clearly isn't.

It is immaterial whether the building industry like it or not, it is simply an unjust tax and reform is long overdue.

[rockofcashel]

What's the betting that Cowen will implement FG's policy on Stamp Duty in the Budget this afternoon?

The Fine Gael Manifesto proposed:

1) Simplifying stamp duty rates by reducing the number of rates from 7 to 3. New rates of 0%, 5% and 9%

2) Making stamp duty fairer so that you only pay the higher rate on the portion of the price over each threshold and not on the entire purchase price. Under Fine Gael's proposals, the first €100,000 is zero rated, the next €350,000 is paid at 5% and the balance is charged at 9%.

Cowen denounced the FG plans from a height, saying they were "irresponsible in the extreme" and that the "exchequer would be the loser".

But what are the odds that Cowen will implement something similar today, as if he had never disagreed with Richard Bruton?

PS: You have to congratulate the Government Press Office on the skillful piece of manipulation they've pulled on our gullible, braindead media today. From 6am onwards the news has been dominated by "growing speculation" that Stamp Duty was going to be radically reformed. Speculation from whom exactly, other than anonymous Governmnet hacks and briefers?

This has been used to get the NCB/"loan" fiasco out of the news for at least one day, so naturally enough they would focus on stamp duty (a focal point of hysterical middle class/Sunday Independent greed) and not on health, low earners or any other boring crap like that

But if it such a good idea, shouldn't you be glad he is willing to implement it ?

[zakalwe]

dam, next they'll be pinching our blueshirts!

[John_C]

My Predictions are;

Cowen to implement FG policy.
FG to oppose it.
No one else to care what either says.

[droghedasouth]

My Predictions are;

Cowen to implement FG policy.
FG to oppose it.
No one else to care what either says.

You forgot:
Continued stagnation in the housing market.

Not a question of too little too late, though I am sure we will hear that, but of chickens coming home to roost.

No matter what he does, the 2000-2006 bubble in housing values is always going to burst and with it FF's reputation for running the economy.

[John_C]

If you ask me (and you didn't), continued stagnation in the housing market is a good thing. We should have had some of it a few years ago but better late than never.

[Compound Fracture]

I'm no economist, but why on earth is everyone calling for "somthing to be done to inject life to the housing markey" (for example, Leather-Face McGurk in the Business Post last weekend)

Surely this benefits only banks, speculators, fat cat developers, estate agents and the like?

Why should the Governmnent help them, at the expense of us downtrodden types who can't afford houses?