According to EUBusiness our Corporate Tax rate is not as safe as our government is claiming. Steffen Seibert the current head of the German governmental press- and information-agency has stated:
The German government will not be making proposals” regarding potential reforms to be put in place for the up to 90-billion-euro (123-billion-dollar) package
“But it is clear that corporation tax should be one point among others when one considers how to increase the ‘receipts’ part of the budget,”.
The German Daily Bild also launched an attack on our low tax rate in an editotial,
“First the country steals jobs and tax revenue from other countries with its extremely low taxes, and now the other countries have to pay up for the second time to prevent its banks from collapse,”
So the Government need to be telling us the truth on this one!
If we raise it, we could be jeopardising our recovery, as it could cause a flight of companies. While the average in the eurozone is 25.7%, we could raise it slightly and not damage it too much, but how much is that? Half a percentage point, a full percentage point? Interesting days ahead on this.
If you are looking for indepth stuff on the budget, you wont find it here! Vists Suzy and Irish Election if you are looking for that sort of stuff! This is my reaction to the budget, which I mostly missed due to college. Hence why I wasnt tweeting.
General Reaction: My first reaction is that this budget won’t make a whole load of difference to me. Things may get cheaper with VAT and Excise cuts, but the carbon tax may cut the savings on it. Yes this is a selfish reaction, but this is how we all react to the budget. How will it effect me!
The Good: So what was good in the budget? The public sector pay cuts were needed. It is a pity there wasn’t an agreement on it, but it needed to happen. The 10% cut in the Taosieachs pay (he took the other 10% already) was a move in the right direction, and so is the cut in ministers pay. The reduction of VAT back to 21% was a good move, but maybe he should have taken a full per centage off it? I agree with the cut in social welfare if you refuse a job.
The Bad: The budget is a bit of fob in my opinion. Its tokenistic to being green. The forestry scheme (which was explained to me by Peter) is a complete and utter fob! The scrappage scheme is like what the hell? Who wanted that? The cut in social welfare is hard to defend and as Suzy points out wont be as protested against as the Pension cuts last time.
“Unlike older people, people with disabilities and their carers, children and the unemployed are not as mobile to protest or vote for that matter.”
The Carbon Tax then is another way of putting more excise on petrol and diesel and will actually increase the cost of everything as everything has to be transported. The 50c on the Medical Card Prescription Items is going to take a while to get used to. I am still still trying to fathom the drop in the excise on drink? Why did that happen? Also why no increase in tobacco excise? I had smokers giving out last night over that has they were hoping for an increase as an incentive to give up smoking!
So thats my opinion. There is no doubt that this budget is a half-arsed fob. Where are the concrete actions, where is the stimulus for Irish Business? Not the banks.
The Government has its priorities wrong and Richard Bruton was right to mention TK Whittaker and Sean Lemass in his remarks considering they had a vision for Ireland and pulled us up by our laces. This budget doesn’t even tie them!
So the bludget is tomorrow and as my boss said, the country is flucked!
The Government cannot put the blame for this tough budget on outside forces. They have been in Government now for nearly 12 years and must share some of the blame.
I was at a fundraising lunch on Friday for Colm Burke and the Guest speakers were Pat Cox and Brian Lucy. Coming out of that lunch I was depressed. Its not looking good for us.
So what should the Government do? Here are my ideas:
- Cut Junior Minister (I know they are cutting 5, so 3 more wont hurt)
- Means test or tax childrens allowance (Consider it part of income)
- Increase top rate of tax
- Reduce civil service
- Reduce TD/Senators/Ministers Pay and Expenses (10% seams like an idea)
- Scrap E-Voting Machines
- Increase the upper “Lenihan Levy” rate
Well they are my ideas. Not sure if I would go as far as what Brian Lucy wants which is to Nationalise the banks. Do you have any ideas for the Brian Lenihan?