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Thread: Budget 2013: No increase in income tax rates, bands, despite Troika requests.

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    Default Budget 2013: No increase in income tax rates, bands, despite Troika requests.

    As per usual the government are starting to close the options available to them and tell us exactly what they WONT be doing in the coming budget.

    Against the wishes of many there wont be any increases of tax rates for the rich.

    So if the government dont have the stomach to widen the tax net it means only one thing. Indirect Taxes will cripple the rest of us.

    What is shocking is that we are constantly told by Noonan, Kenny and Gilmore that they have to do certain things such as property tax charges because it forms part of the Troika agreement. However the Troika have throughtheir most recent edition of the EU-IMF Memorandum of Understanding included “a broadening” of the income tax base as one of its revenue-raising measures.

    It appears Fine Gael/Labour Ignore the Troika when it suits them.


    FINANCE MINISTER Michael Noonan has affirmed that there are no plans to increase income tax rates in the coming Budget – despite a Troika commitment to widen the personal income tax base.


    Noonan has gone on the record to confirm that the pledge in the Programme for Government – in which the government pledged to maintain the current rates of income tax, income bands and tax credits – remained the policy of the Fine Gael-Labour coalition.


    “There are no plans at this time to depart from this policy,” Noonan said.


    The commitment – on the record of the Dáil – came after parliamentary questions from Fine Gael backbencher Terence Flanagan, who asked if the government planned to introduce a higher rate of income tax for high earners.


    “In addition, we will not increase the top marginal rates of taxes on income,” Noonan affirmed in his written reply.


    The minister said OECD research named Ireland as having one of the most progressive tax systems of any of its EU members.


    “I should point out that the top marginal rate of taxation on income is now 52 per cent for PAYE workers and 55 per cent for the self-employed,” he said.
    Noonan elaborated that the top 5 per cent of earners were set to pay 43 per cent of all income tax collected in 2012, while some 78 per cent of all workers – those earning under €50,000 a year – would contribute only a fifth of the tax take.


    Though the commitment will be welcome news to PAYE workers ahead of the Budget, it may make the Budget arithmetic more difficult for the minister – as the most recent edition of the EU-IMF Memorandum of Understanding included “a broadening” of the income tax base as one of its revenue-raising measures.
    The Budget, which is due in 45 days’ time, is due to include measures which will raise an extra €1.25 billion in taxes, as well as spending cuts worth €2.25 billion.

    Budget 2013: Noonan pledges no increase in income tax rates, bands
    Last edited by Neutron; 21st October 2012 at 11:09 AM.

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    Politics.ie Member mr. jings's Avatar
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    We're still going to pay a huge price in the Budget, no matter how they gussy it up.

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    [QUOTE=mr. jings;5928054]We're still going to pay a huge price in the Budget, no matter how they gussy it up.[/QUOTE

    No some won't pay as much as others. The coping and lower classes will be hit hard like usual.

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    The way I read it is that broadening the tax base is not the same thing as increasing income tax rates. (I'm not defending Noonan's ill conceived plans).
    “Still paying, still to owe. Eternal woe! ” ― Paradise Lost, John Milton

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    I don't see why people are so keen on income tax rises, we have a spending problem in this country not a tax raising one. we spend 20 B on welfare and take in 15B in income taxes, figure like that are mindblowing and need to be addressed now.

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    I think the allergy to new taxation of any kind comes from a fear that it might deter investment in the economy. In some areas (corporation tax), that's actually a fear blanket across the political spectrum in this country, for the most part. I guess the consensus among FG/Lab is to balance the books by finding new savings or as previously mentioned, indirect taxes on consumption or whatever, in order to completely avoid an "Ireland hikes taxes.." headline in the press. If you want to get more in taxes then, you need to get more taxpayers, and the only way to do that is with more jobs, more firms operating in the country and so on... sadly that's a much slower process than raising taxes (direct or indirect) on people already working, particularly with the world economy so sluggish to recover.

    I think that Irish politicians are really just hoping for the global economy to start to grow significantly again, since we have some advantages over competitors when it comes to attracting investment, such as the tax policy, and now we also have an unfathomable amount of vacant business property that is declining in value. Whoever is in power if this happens will claim credit for it, even though they'll have very little to do with it.

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    Politics.ie Member Crazy horse 6's Avatar
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    It really does'nt matter what rabbit they pull out of the hat in the budget or the next 10 budgets, none of it will matter unless we rid ourselves of the bank debt. Yes we have a deficit but it can be fixed by itself with the right leadership (which we don't have at present).

    The "steady as she goes" approach has failed and unless the government change their approach within the next few weeks we can not start on the road to recovery.

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    Politics.ie Member ger12's Avatar
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    Quote Originally Posted by mr. jings View Post
    We're still going to pay a huge price in the Budget, no matter how they gussy it up.
    Some more than others.
    At 12 weeks the “clump of cells” toes curl, her mouth makes sucking movements, she has a human face and if you prod the tummy she will move in response

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    Quote Originally Posted by tommygavin View Post
    I don't see why people are so keen on income tax rises, we have a spending problem in this country not a tax raising one. we spend 20 B on welfare and take in 15B in income taxes, figure like that are mindblowing and need to be addressed now.
    Government spending is still rising despite all the cutbacks. The only way to rein in expenditure is to lower or freeze their income.

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    Quote Originally Posted by Neutron View Post
    As per usual the government are starting to close the options available to them and tell us exactly what they WONT be doing in the coming budget.

    Against the wishes of many there wont be any increases of tax rates for the rich.

    So if the government dont have the stomach to widen the tax net it means only one thing. Indirect Taxes will cripple the rest of us.

    What is shocking is that we are constantly told by Noonan, Kenny and Gilmore that they have to do certain things such as property tax charges because it forms part of the Troika agreement. However the Troika have throughtheir most recent edition of the EU-IMF Memorandum of Understanding included “a broadening” of the income tax base as one of its revenue-raising measures.

    It appears Fine Gael/Labour Ignore the Troika when it suits them.





    Budget 2013: Noonan pledges no increase in income tax rates, bands
    Broadening income tax to include low incomes would make social welfare trap deeper,with welfare plus nixers more attractive than work.

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