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Thread: €2.5Bn savings from closing tax breaks.

  1. #1
    Politics.ie Member
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    Default €2.5Bn savings from closing tax breaks.

    According to RTE, 2 members of the Commission on Taxation have claimed that €2.5Bn in savings could be had by abolition or adjustment of tax breaks.

    It is unlikely that the budget will do much about this though because tax breaks disproportionately benefit those at the top of the income scale whereas Lenihans favourite targets are the old, the sick, the poor and PS workers.

    Source.

  2. #2
    Dylan2010
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    They need to go. If something is worth doing you dont need a tax break else end up with empty hotels, bloated pension companies and all the other "hole digging" activities that the gov likes to back. A good start would be pension relief reduced to stardard rate up to salaries of 100K , after that you are on your own

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    Politics.ie Member firefly123's Avatar
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    Because as you well know baron that would cause a mass exodus of the ballsy wealth creators from these shores. No doubt Ellis island would be on standby to welcome the huddled masses of entrepreneurs who would be raised on golden thrones when they arrive.

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    Quote Originally Posted by Baron von Biffo View Post
    According to RTE, 2 members of the Commission on Taxation have claimed that €2.5Bn in savings could be had by abolition or adjustment of tax breaks.

    It is unlikely that the budget will do much about this though because tax breaks disproportionately benefit those at the top of the income scale whereas Lenihans favourite targets are the old, the sick, the poor and PS workers.

    Source.
    One of the reasons I suppose is because the higher earners pay disproportionately more tax. Yeah, yeah, there are those at the top, the very top, that dont pay any - how many is that exactly?

    Granted, there are a number of tax breaks that should go - stud fees, all property related ones (including interest relief), but things like pension benefits should not be tampered with. Plus, in the end of the day, the tax foregone is really only tax delayed because it is paid on the pension income received.

    Its a great headline grabber though.

    PS: on the pnesion breaks I would agree that a realistic cap could be put in there. 150k isw too high. 100K would not be so bad.
    Last edited by Watcher2; 18th October 2010 at 12:38 PM. Reason: After thought.

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    Politics.ie Member slumdog1971's Avatar
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    Quote Originally Posted by firefly123 View Post
    Because as you well know baron that would cause a mass exodus of the ballsy wealth creators from these shores. No doubt Ellis island would be on standby to welcome the huddled masses of entrepreneurs who would be raised on golden thrones when they arrive.
    Absolute rubbish.

    There was no flight of capital when the Brits introduced a 50% tax on all bonuses earned in the financial sector.

    Surely to God, in any decent society, we should be removing tax breaks which benefit rich people before we take anymore off the poor.

    Have FF messed up our moral compass this much ????

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    Politics.ie Member roc_'s Avatar
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    It's not just tax breaks - it's stuff like in the article below...

    Getting its sums wrong: state overpaid

    This is endemic in nearly all areas of government spending - they are wildly overpaying their buddies for goods and services (as well as giving the same people these tax breaks)...

    And don't even let's get started on the grants and subsidies they dole out.

    "The state spent more than €195m on sites for schools between 2005 and 2009, which experts say could have been bought for as little as €25m, a Sunday Tribune investigation can reveal.

    Among the major beneficiaries of the sales were some of the country's best- known property developers, religious orders and dioceses, as well as several local authorities. >>>>>>>>>>>>>>"
    “Words are animals, alive with a will of their own”.

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    Politics.ie Member firefly123's Avatar
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    Quote Originally Posted by slumdog1971 View Post
    Absolute rubbish.

    There was no flight of capital when the Brits introduced a 50% tax on all bonuses earned in the financial sector.

    Surely to God, in any decent society, we should be removing tax breaks which benefit rich people before we take anymore off the poor.

    Have FF messed up our moral compass this much ????
    Eh slumdog I think you might have your sarcasm filter switched on there.

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    Politics.ie Member HarshBuzz's Avatar
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    any more detail on this? Throwing out a headline number without providing specific tax reliefs doesn't really help.

    That said, I'm all in favour of removing reliefs especially when it comes to property

    let's start with landlords tax releif and then get rid of mortgage interest relief
    “'retail deposit flight, I don't see that as a great danger. Ireland is an island” - Brian Lenihan - to hundreds of international investors

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    Landlords tax relief was reduced to 75% but this was only on residential properties. Commercial properties were not touched, relief on such is still granted at 100%.

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    Wondering about the pension tax break and how this would work!

    As previous poster stated, it is currently only a deferral as tax is paid on the income drawn down from your pension in any case, but, say a standardrate is introduced, how would it work?

    If say a person pays tax at higher rate, yet is taxes additionally on funds he puts into his pension, then how could he be taxed again at income tax rates on funds he draws down on same penaon when he/she retires ?

    Second, if pension contributions are to be taxed, how does this impact contributions for db schemes from both employer and employee ?

    How do you value the effective contribution for a db scheme? So an employee who is benefitting from the employers building up of fund for a db scheme is he/she taxed on the full benefit of this contribution in the same manner as say an employee who submits a defined contribution from both smokies and employer ?
    The true "front line workers" are the private sector paye employees who are first to take the bullet. Cannon fodder for their state and the public sector.

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