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Thread: Its back to the 80's - Servicing National Debt to hit 50% of PAYE next year: Goodbody

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    Default Its back to the 80's - Servicing National Debt to hit 50% of PAYE next year: Goodbody

    According to Goodbody Stockbrokers the cost of servicing the national debt next year will hit €5.2billion, or about 50% of PAYE income tax revenues. In the deepest darkest period of the 80's servicing the national debt accounted for up to 2/3rds of PAYE. We are likely to be around that figure in 2011. At €5.2billion servicing the national debt will account for circa 16-17% of all tax revenues.

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    Shocking to think that half of the PAYE that leaves your pay packet every month is going directly to pay-off foreign lenders.

    When people say they're willing to pay a bit more tax during hard times, they didn't think it was going to pay the bonuses of Middle East and Asian fatcats

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    I'm sure it's well worth it - didn't we save Anglo-Irish and Bank of Ireland and AIB and isn't that the most important thing in the world? If we didn't have the Irish banks we would have had to make do with nasty foreign banks like NIB and Ulster bank and Halifax. That would be dreadful. I am delighted to work to pay off the banks' debt for the next decade.

    It's a lesson to the banks in the future: anytime they fail we'll be there to pay for their mistakes. That's how capitalism works - when a large limited company in the private sector is insolvent then it's time for the public to step in and borrow money to pay its debts. And when that company makes profits by the billion it should spend the money on itself or return it to its shareholders in dividends.

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    That's not how capitalism works.This is Corporate socialism introduced by government interference .These banks would be let fail if they allowed capitalism to work.
    Quote Originally Posted by ForestGhetto View Post
    I'm sure it's well worth it - didn't we save Anglo-Irish and Bank of Ireland and AIB and isn't that the most important thing in the world? If we didn't have the Irish banks we would have had to make do with nasty foreign banks like NIB and Ulster bank and Halifax. That would be dreadful. I am delighted to work to pay off the banks' debt for the next decade.

    It's a lesson to the banks in the future: anytime they fail we'll be there to pay for their mistakes. That's how capitalism works - when a large limited company in the private sector is insolvent then it's time for the public to step in and borrow money to pay its debts. And when that company makes profits by the billion it should spend the money on itself or return it to its shareholders in dividends.
    A champion of the people emerges with the age-old and appealing promise of "something for nothing" - to be financed through every-increasing taxes. Supply and demand are thrown out of gear - the overhead goes up; the effective use of human energy goes down; the standard of living is lowered because money cannot buy wealth that is not produced.

    WEAVER, HENRY GRADY,

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    Politics.ie Member Nudavongs's Avatar
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    Not enough people here do nuance.

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    Politics.ie Member mr_anderson's Avatar
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    What's % is that in relation to our Income Tax receipts ?

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    Great to have some good news Nuvadongs, but don't your realize that the other side of the equation is the rate that we can turn over the govt bonds at maturity date.
    At the moment this is very low, but if the China slowdown proves serious or if the Iran Saudi thing blows up or any number of the wild cards out there -- you name it? Putin and Ukraine (and Trump as prez). A vote for Brexit... A damp squib election with Enda in some hodge-podge coalition of independents who can't get anything done...
    A strident move on the part of the EU to harmonize corporate tax rate...
    Any number of black and not so black swans out there
    Someone should make a movie about this place.

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    Politics.ie Member Nudavongs's Avatar
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    Quote Originally Posted by mr_anderson View Post
    What's % is that in relation to our Income Tax receipts ?
    This was the state of play for last year as forecast in October 2014.

    Not enough people here do nuance.

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    Politics.ie Member silverharp's Avatar
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    Quote Originally Posted by Nudavongs View Post
    you cant spend GDP and the attempt at Hubris seems a bit deluded? in the 80's the borrowing rate of interest was high. Now its low, a doubling of the the interest rate the gov. pays wouldnt be outrageous but it would mean all the PAYE would go on servicing
    "So you think humans should run their societies like lobsters?"........ Cathy Newman C4 News

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    Politics.ie Member Nudavongs's Avatar
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    Quote Originally Posted by yosef shompeter View Post
    Great to have some good news Nuvadongs, but don't your realize that the other side of the equation is the rate that we can turn over the govt bonds at maturity date.
    At the moment this is very low, but if the China slowdown proves serious or if the Iran Saudi thing blows up or any number of the wild cards out there -- you name it? Putin and Ukraine (and Trump as prez). A vote for Brexit... A damp squib election with Enda in some hodge-podge coalition of independents who can't get anything done...
    A strident move on the part of the EU to harmonize corporate tax rate...
    Any number of black and not so black swans out there
    Re the bit in bold, they have no power to do that.

    Lots of things could go off the rails and eurozone bond yields could go crazy too. However, the good thing about our position now is that we're not on the periphery financially any more; we're nearer the core. There are a large number of EZ countries whose yields would be hit before ours, including the biggies of Spain and Italy (and possibly France).

    And Mario did say he'd do "whatever it takes.....".
    Not enough people here do nuance.

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