Did the government miscalculate revenue from the pension levy (its tax deductable)

[tenderloins1]

This mornings Irish Times suggests that the pension levy is tax deductable and thus the revenue from it will be 900 million and not the 1.4 billion announced on Tuesday.
Is this an another almighty feck up?

[Outlander]

They seem to have made the whole bloody thing up on the hoof. Variuos ministers interviewed after the fact gave differing stories...

[porthos2]

It seems like they did miscalculate, the Tanaiste was certainly a bit riled when questioned on it by Labour yesterday.

[Middleaged]

Well if they have not calculated it after tax deductibility, they need a kicking.

[fiannafuddy]

The ready reckoner on the Dept. of Finance website gives the net effect, so I'd assume €1.4bn is the saving after tax (in a full year)

[Chrisco]

They should begin by firing all the civil servants in the Dept of Finance and the Central Bank. Neither shower of them can do accounting or economics. Last week the Central Bank predicted that unemployment would average 9.4% for 2009; we all know what happened yesterday.

But then it's typical of the problem with this country - being incompetent at your job is no threat to keeping it.

[swords driver]

Another factor that has not been taken into account is that many low paid public servants may now become eligible for family income supplement, I cannot get exact figures but it could be significant.

[fiannafuddy]

Another factor that has not been taken into account is that many low paid public servants may now become eligible for family income supplement, I cannot get exact figures but it could be significant.

Besides cleaners, can anyone else list the professions in the public service whose P60 income would be €15k or less?? I don't think we need to worry about the faux "low paid" on €65k getting FIS.

"I only have €600 after my mortgage and car loan are paid"

[DeGaulle 2.0]

The ready reckoner on the Dept. of Finance website gives the net effect, so I'd assume €1.4bn is the saving after tax (in a full year)

If the public sector pay bill is 20 Billion and if the pension levy averages 7% as we are told, then 7% of 20 billion is 1.4 billion (before tax relief, if any).

If they have got this wrong then God help our credit rating.

[Factorem]

Besides cleaners, can anyone else list the professions in the public service whose P60 income would be €15k or less?? I don't think we need to worry about the faux "low paid" on €65k getting FIS.

"I only have €600 after my mortgage and car loan are paid"

Forget cleaners!

Plenty of "low paid" director's wives who work as "secretaries" earning a tax-free income -- €13,000 is the tax-free limit I believe?

Better to give the €13,000 to your wife than pay it to yourself and pay 41% tax on it!