But, if we had a balanced budget and dont borrow a cent, then credit ratings/cost of borrowing are irrelevent. I'd like to hear views on whether, in absence of giving any money to the banks or NAMA, we it would be possible for us to balance our budget through expenditure cuts alone. Has this option ever been considered?
Here's a suggestion how to raise it:
Raise an additional €5bn by reform of the tax system to include all workers (high and low) in the tax net.
Go down the PPP route for large capital infrastructure programmes - save €5bn in short term, but still get the projects built.
Shave 20% of the SW budget. Should be easy to do as our SW rates are way too generous in many areas. Can be achieved without hitting pensioners or short term unemployed badly. Savings of €4bn.
Shave 3bn off the public payroll through shutting down non-essential quangos, amalgamating councils, reductions of staff in other areas. Savings 3bn
Shave 3bn off the HSE budget - get rid of all the surplus administrative staff and make hospitals tender for business and get paid only for work done instead of in lump sums in advance. Savings 3bn
The above may cause some short term disruption in some areas, but are very very possible and may even have long term benefits. The current approach the Government is taking is going to hit everyone harder than the above long term. Why cant we take a manageable hit now instead?
Not sure that pensioners and/or short-term un-employed would consider a 20% cut as not being hit badly!
Shave 20% of the SW budget. Should be easy to do as our SW rates are way too generous in many areas. Can be achieved without hitting pensioners or short term unemployed badly.
Why exempt pensioners?Shave 20% of the SW budget. Should be easy to do as our SW rates are way too generous in many areas. Can be achieved without hitting pensioners or short term unemployed badly. Savings of €4bn.
AgreeWhy exempt pensioners?
The more services government provides the more expensive it is to the tax payer. As government does not have to use resources in a profitable way, you are guaranteed to have huge wastage, which means increased costs of production. As the costs of production come out of taxes, this means a higher tax burden. The average citizen would pay less if a service is privately provided, while at the same time lowering the tax burden, than if taxes are taken to have the state provide the service.Couple of suggestions.
Achieve social welfare reform by ensuring as many of the essentials as possible e.g. medical card, public transport, utility bills (within reason)and accomodation are provided by the state, then slash the monetary benefits (including rent allowance).
This statement is fundamentally flawed. If a public sector worker is laid off, and was earning €30000, then there is a net gain in the public finances of about €20000 (€30000 - dole). This would mean that the tax payer could be taxed less, and have €20000 more to spend or invest, either of which would result in a benefit to the economy and employment. It would also force more people into the productive part of the economy.I wouldn't focus on cutting public sector numbers, no point in putting more people on the dole. We do need to cast a very ruthless eye on rates of pay however.
This is correct employing people for the sake of employment, or raising wages beyond their market value has a negative effect on the economy.With 400,000 unemployed it does not make sense to have people in the more menial jobs on very good rates of pay. Private sector companies with a jot of sense should realise this as well. Higher paid public sector jobs should be reassessed if only out of solidarity
While increasing taxation will plug a hole in public finances it will have a detrimental effect on the economy. Any form of taxation diverts money from private spending or investment, which will reduce the amount of production, which will lead to more unemployment and a reduction in wealth. This is the case whether it is income tax, capital gains tax or inheritance tax that is increased.Inheritance tax & Gift tax:
We need to get real on these. Unless a family business or the main family home is being passed on then tax the hell out of inheritances and gifts
Successful enterprise (the only way to emerge from the life support we are currently on). Look at what schemes have actually worked in the past and prioritise their continuation.
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