Budgetary measures neither fair nor compassionate

[Utopian Hermit Monk]

Luke 21:1-4

As he looked up, Jesus saw the rich putting their gifts into the temple treasury. He also saw a poor widow put in two very small copper coins. "I tell you the truth," he said, "this poor widow has put in more than all the others. All these people gave their gifts out of their wealth; but she out of her poverty put in all she had to live on."


IT

Mr Lenihan told the Dáil that fairness was the cornerstone of the emergency Budget with a person on the minimum wage of €17,500 a year being asked to pay 2 per cent of their wages, someone on €50,000 paying 4 per cent of theirs and a person on €300,000 being hit for 9 per cent of their income.

Mr. Lenihan seems to believe that it's the wealthier people who are feeling more pain after his Budget, because they have been asked to give more! The minimum wage brigade, who are left with the princely annual sum of €17,150, may have to feed themselves with low-quality discount brands or buy their clothes in charity shops. Those dependent on welfare benefits may have to cancel Christmas. But this is naught compared to the suffering of the people who used to earn €300,000, and are now left with a mere €273,000! They may even be forced to cut out at least one expensive annual foreign holidays or a shopping trip to New York.

Given his lineage (father and grandfather TDs; brother Conor and Auntie Mary sitting just a few seats away in the Dail) and his privileged upbringing (private schooling, Cambridge, etc.), it is hardly surprising that Mr. Lenihan probably finds it absolutely impossible to even begin to imagine what it means for someone like the widow in the Gospel to be asked to give out of "all she had to live on". Far too many of his Government colleagues have become accustomed to life in a bubble of privilege, far removed from the reality of someone who has to count the cents and euros in order to get by.

Sadly, this Budget, like its predecessors, demonstrates that the present Government understands neither fairness nor compassion. Jesus also said: "The poor will be with you always". Indeed!

[Utopian Hermit Monk]

more of this nonsense in today's Indo

Wealthiest hardest hit by changes in income levy

The wealthiest were hardest hit by Minister Brian Lenihan when he announced details of his Supplementary Budget earlier today.

With a doubling of the income levies, the Finance Minister ensured that those who earn the biggest salaries will be hardest hit by the hikes, along with smokers and the owners of diesel vehicles....


Anyone who believes that the wealthiest are the 'hardest hit' is living in a parallel universe.

[smitchy2]

In fairness the wealthiest did take a big hit yesterday whatever way you look at it.
An extra 5% (income levy/health levy) of earnings or 5k per €100k earned.
Overall the very wealthy earners are paying 41% plus 5% health levy plus 6% income levy.
That is 52% on all your income above €37k.

There does exist different shelters where income can be hidden from tax and the non-resident entrepreneurs who pay nothing are a joke.
4% PRSI has to be paid up to €75k but I think this should be on all their income.

The middle income earner will feel this budget the most though.

[Utopian Hermit Monk]

In fairness the wealthiest did take a big hit yesterday whatever way you look at it.
An extra 5% (income levy/health levy) of earnings or 5k per €100k earned.
Overall the very wealthy earners are paying 41% plus 5% health levy plus 6% income levy.
That is 52% on all your income above €37k.

Agreed. But some people's income is less than half of €37,000 in the first place.


Re; the question of 'fairness':

I think this Budget (which exemplifies longstanding systemic inequalities) fails to satisfy one of the basic 'principles of justice' developed by the philosopher John Rawls (in his classic 1971 book 'A Theory of Justice', and the 2001 revision, 'Justice as Fairness: A Restatement'.

According to Rawls, social and economic inequalities are to satisfy two conditions:

first, they are to be attached to offices and positions open to all under conditions of fair equality of opportunity;

and second, they are to be to the greatest benefit of the least-advantaged members of society.

The fact that our present system fails to satisfy either of these basic conditions of justice raises many questions about the credibility and viability of our 'democracy'.