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Thread: a tax on savings?

  1. #1
    Politics.ie Member seabhcan's Avatar
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    Default a tax on savings?

    Printing money (or "Quantative Easing" as its called these days) lowers the value of all money held by savers, essentially taxing them. The UK is going this road and so is the US. Its probably a needed evil, but time will tell.

    The ECB may or may not follow them, but at the moment Ireland is just waiting to see. I propose we don't wait, and that the gov tax savers in the March mini-budget.

    A 0.5% tax on the value of deposits would generate about 2bln. It could be described as a levy to pay for the deposit guarentee. It might also encourage spending - as why keep your money on deposit when its getting taxed, might as well spend it.

    To prevent offshoring the money, the tax could be on savings held world wide by Irish residents.
    Last edited by Conor; 5th March 2009 at 03:02 PM.

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    Politics.ie Member HarshBuzz's Avatar
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    let's just call it the 'steal the assets of the prudent to pay for the stupidity of the foolish' tax

    oh, and watch the entire deposit base of Ireland disappear offshore overnight

    stupid idea, I hope this is not Labour policy

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    Are you saying tax the princple?

    If so that would speed up the collapse of the banks.

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    Politics.ie Member TradCat's Avatar
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    Why can the state confiscate money you earn and not money you have? The assumption is that it has been taxed already when you earned it.

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    Pardon my ignorance, but is a run on the banks not something we should be trying to avoid.

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    So for every 100 euro I save I pay .50cent to the government??? Even though that 100 I saved comes from my earnings which have already been taxed????

    Makes no sense.

    A better idea would be to increase the DIRT (up to say 25%) on interest receipts greater than 1,000.

  7. #7

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    Quote Originally Posted by seabhcan View Post
    Printing money (or "Quantative Easing" as its called these days) lowers the value of all money held by savers, essentially taxing them. The UK is going this road and so is the US. Its probably a needed evil, but time will tell.

    The ECB may or may not follow them, but at the moment Ireland is just waiting to see. I propose we don't wait, and that the gov tax savers in the March mini-budget.

    A 0.5% tax on the value of deposits would generate about 2bln. It could be described as a levy to pay for the deposit guarentee. It might also encourage spending - as why keep your money on deposit when its getting taxed, might as well spend it.

    To prevent offshoring the money, the tax could be on savings held world wide by Irish residents.
    A jubilee would be better. Sure it would mean that foolish borrowers would get off the hook but lets face it they will still be foolish the next time around. Proper regulation will sort out a lot of that crap. The rest of us will be smarter and our savings will still be worth something.

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    Default Would you be liable for the tax if the money was under your bed?

    Would you be liable for the tax if the money was under your bed?

  9. #9
    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by Skin View Post
    So for every 100 euro I save I pay .50cent to the government??? Even though that 100 I saved comes from my earnings which have already been taxed????

    Makes no sense.

    A better idea would be to increase the DIRT (up to say 25%) on interest receipts greater than 1,000.
    DIRT is 26% now.

    Taxing savings is no different from a property tax, which exists in many countries.

  10. #10
    Politics.ie Member cyberianpan's Avatar
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    There's too many threads on this topic & this one is a duplicate

    please lock some of them !
    Bank of England - Quantitative Easing.

    Bank of England all set for quantitive easing

    cYp
    "Yawn , am I alive yet ?"

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