Did the Brians consider any implications of the Income Levy?

[michaelm]

I think not; but I suppose they don't really think anything out. Really it's a total mess, just read the AAM FAQ.

From said FAQ . .
Q. I am an Employer, how am I supposed to administer all of this?
A. Start praying for divine inspiration. It gets worse.

It's a real headache for employers, payroll people and Revenue. Why didn't they simply raise or remove the PRSI ceiling? And don't get me started on a .5% increase in VAT . . and then to introduce it in December rather than January . . are they clueless?

 

[Caveat]

and then to introduce it in December rather than January . . are they clueless?

A vain hope to capture the Christmas spending market?

But yes, messy and perhaps a little desperate.

 

[TarfHead]

. . and then to introduce it in December rather than January . . are they clueless?

Something I heard on Liveline ..

Many retailers aren't going to go to the trouble of repricing everything for 0.5%, so will take the hit themselves. Then the Minister will announce another 0.5% increase which the retailers will also absorb. So they've incerased VAT revenues without increasing inflation.

Equally, they could have also boosted VAT revenues in an inflation-neutral way by reducing VAT, but that type of thinking is counter-intuitive to the senior civil servants in the Department of Finance who learned their trade in the 1970s and 1980s.

 

[ubiquitous]

A vain hope to capture the Christmas spending market?

Vain in more ways than one, I'm afraid

So they've incerased VAT revenues without increasing inflation.

Incidentally, this is a fallacy on the part of the government. All tax increases feed into inflation (whether reflected in official figures or not). The multiplicity of stealth taxes in recent years is one reason why our prices are out of line with other countries.

 

[Lollix]

. are they clueless?

You got it!

Up to now, FF would have been able to ask a couple of big developers for advice on framing the budget, but these guys were too busy saving their own skins this time. That left Beavis and Butthead all alone; they had to cobble together a budget, float it out there, and then take back the bits that made people unhappy. What a way to run a country!

I used to be a strong suppprter of this outfit by the way, so I'm entitled to criticise!

 

[Towger]

Dept of Finance claim it was on the cards since the summer.

Revenue did not know about it until a day or two before the Budget.

What really made it complicated came after the Budget, when the politicians started to add all the exemptions to keep the various groups happy.

Do you know that the 3% rate, because it was not in the Budget will no be legal untill the Finance Act is passed and signed by the president. Do you think that will happen by the 1st of January?

 

[rabbit]

Something I heard on Liveline ..

Many retailers aren't going to go to the trouble of repricing everything for 0.5%, so will take the hit themselves.

True. If something is 19.95 or 49 euro the average small shop anyway is not going to reprice up 0.5%
The self employed are down a huge amount overall this year ( in general ) as it is - watch many more go bust next year methinks.