Budget 2010 Predictions

[HarshBuzz]

Is protecting publicans in the national interest?

it's in FF's interest; same thing

[X-ray]

A removal of marginal rate tax relief on pension contributions could be the straw that breaks the camels back. That spells middle class revolt and pension scheme collapses. Are they idiotic enough to try it?

[Harmonica]

A removal of marginal rate tax relief on pension contributions could be the straw that breaks the camels back. That spells middle class revolt and pension scheme collapses. Are they idiotic enough to try it?

As a private sector employee that is one issue would probably get me on the streets.

Without tax relief especially at the top rate, my defined contribution pension would be worthless. Anyone with a pension that employer does not contribute towards would cancel it. Despite putting nothing into pension from old employer or 5 years will take another 12 years at 5% growth a year just to get back to the sums put into it so far.

[X-ray]

As a private sector employee that is one issue would probably get me on the streets.

Without tax relief especially at the top rate, my defined contribution pension would be worthless. Anyone with a pension that employer does not contribute towards would cancel it. Despite putting nothing into pension from old employer or 5 years will take another 12 years at 5% growth a year just to get back to the sums put into it so far.

I am a PS worker but it would upset me too. I pay AVCs and 5% of basic salary into pension. I also have the pension levy. I think it would finish private pensions off completely. I think they will also tax lump sums, therefore that income will be at least subject to income tax twice.
I really think it could bring down a government, it might not be right that higher earners get more tax relief than lower ones, but it is political sucide to mess with it.

[toughbutfair]

A removal of marginal rate tax relief on pension contributions could be the straw that breaks the camels back. That spells middle class revolt and pension scheme collapses. Are they idiotic enough to try it?

Why should you get tax relief on putting money into a pension? I don't get it for putting my savings into a bank to provide for my future. A pension manager should be able to justify his value without needing tax breaks.

I'd scrap the relief but a compromise would be to scrap release on more than 15k contributions therefore not that many people would be affected,just a few rich people.

[X-ray]

Why should you get tax relief on putting money into a pension? I don't get it for putting my savings into a bank to provide for my future. A pension manager should be able to justify his value without needing tax breaks.

I'd scrap the relief but a compromise would be to scrap release on more than 15k contributions therefore not that many people would be affected,just a few rich people.

if your savings scheme is for a pension you do get tax relief for it.
Why should I pay tax now on income, put the remains of it away for 40 years and then pay income tax on it again? thats effectively what you are saying

so i earn extra 100 quid

pay 50% odd in tax now keep 50 for my pension

then I get the 50 quid when 65, its income its taxed again at say 25%.

This is your version of fair?

Its no wonder we are screwed

[toughbutfair]

if your savings scheme is for a pension you do get tax relief for it.
Why should I pay tax now on income, put the remains of it away for 40 years and then pay income tax on it again? thats effectively what you are saying

so i earn extra 100 quid

pay 50% odd in tax now keep 50 for my pension

then I get the 50 quid when 65, its income its taxed again at say 25%.

This is your version of fair?

Its no wonder we are screwed

I'd take it out of the tax net so no tax relief going in, not taxed when come out. The people getting lump sums today got tax relief going in, so it should be taxed on way out.

[X-ray]

I'd take it out of the tax net so no tax relief going in, not taxed when come out. The people getting lump sums today got tax relief going in, so it should be taxed on way out.

You can do that, but you do realise that many schemes will simply collapse. there is no point point money into these things is there is no or low tax relief, they tend to lose money hand over fist and only have a 50/50 chance of actually existing in the future when it comes to pay day. I for one will be out if tax relief drops, I almost gave up recently anyway.

If the government is not going to be provide security to pensions it needs to do something else. It its not tax relief what is it?
I think we have proven that the prvate sector is not capable of managing longterm financial security.

[erwin van der sar]

You're wrong.

As working professional and emigrant in one person I tell us those Irish Social Welfare (SW)support is huge drain on the public finances. Especially when it doesn't make any sense to work as sometimes you will get cheating (as i met such cases a lot) SW and getting more than normal ,paying PRSI person.

As I worked in several different countries before as accountant and I can only say: ...cut, verify applications several times( I met “single moms” I guess only for SW, living with their “boyfriends” only due to not losing those money) and cut those expenses.

Ireland is the most taking care about unemployed persons country that i have visited.I have to add as well the smallest one(economy size).

Where is the logic in this?

Child Benefit should be means tested and the top rate of tax should be put up to 50%. Social Welfare should not be touched but if it is say to €200 a month the bonus should be reintroduced. There should be more cuts in TD's and Senator's pay, entitlements and expenses etc. and 4 Ministerial positions and departments should be scrapped and merged with others. Cigarettes to be put up and drink sold in off-licenses and shops to protect publicans.

[toughbutfair]

I dont think the government will be able to pass the type of budget that it needs to pass so we will either get a general election or a half-arsed budget (circa 2b cuts).

I agree - they'll bottle it and leave us worse off.