Upcoming budget.

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thedaras

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If the government bring in, water tax,property tax etc and if on average most people can expect to lose say 1oo euro a month ( though God knows how much it will be!) what would you cut back on to make up this amount?

For example if you had a second car,and it wasn't absolutey necessary ,would that be the first to go? Even though it would be very difficult to sell,you could save on car tax,insurance ,petrol.

What ideas for cutting back do you have,.:eek:
I think most have cut back significantly already,but what next is my question?
 
I believe people should forget about the idea of suffering for others' sins.
 
Water tax, property etc they all take time to implement and they need to keep something in reserve for the following years 3bn of taxs/cuts.
I believe the following will with bring in €3bn+, and could take more than €100 out of some pockets:
Doing a way the PAYE Tax Credit of €1830 Per Year.
Doing a way with the PRSI Free Allowance of €127 Per Week.
Removing PRSI Employee Ceiling €75036.
Doing a way with exemptions form the 4% health levy, for those with medical cards, widows etc.
The last 3 may be rolled into the introduction of the 'universal' social contribution.
 
Towger said:
Water tax, property etc they all take time to implement and they need to keep something in reserve for the following years 3bn of taxs/cuts.
I believe the following will with bring in €3bn+, and could take more than €100 out of some pockets:
Doing a way the PAYE Tax Credit of €1830 Per Year.
Doing a way with the PRSI Free Allowance of €127 Per Week.
Removing PRSI Employee Ceiling €75036.
Doing a way with exemptions form the 4% health levy, for those with medical cards, widows etc.
The last 3 may be rolled into the introduction of the 'universal' social contribution.
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Yes I think most if not all of that will happen,but I also think what may happen is that workers who are presently outside the tax net will be targeted.
At this stage we may be better off if the IMF took control!
 
I think those options are better than letting the IMF intervene to be honest.

Once the IMF come in, then you'll see bad cut backs!

I also think its not a bad thing to have everyone pay some sort of income tax. IT should be a small contribution for many, but I think if you contribute something to the tax intake it will make you value what you receive a bit more. We can't continue as an economy where 50% of people pay zero tax at all.

Of course, we should also be trying to make sure that there is no tax evasion at the upper end which is just as, if not more, damaging.
 
RMCF said:
I also think its not a bad thing to have everyone pay some sort of income tax. IT should be a small contribution for many, but I think if you contribute something to the tax intake it will make you value what you receive a bit more. We can't continue as an economy where 50% of people pay zero tax at all.
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I agree. When everyone contributes, then everyone has a bit more respect for how their money is spent, and a bit more satisfaction that they are making a contribution to the country also.
 
Another thing to remember, the Gov has stated that it wants people to spend - not save. I think you will be looking at a substantial increase in the DIRT.

In relation to the IMF, they will not come in here. There are other options before that would even be considered.

I do think the punitive measures would be made a little easier if the ministers would drop their own expenses and salaries to a reasonable amount in line with other world leaders or even in line with the service that they provide. (sic).
 
I don't think the PAYE tax credit or the PRSI free allowance will be abolished. Too much impact on lower-paid for those changes to be implemented.

IMO some of the changes will be:

1. Decrease of both tax bands. This has the effect of not hitting those on low pay but those on higher pay

2. Levy to be incorporated into the PRSI system (already mooted by Brian Lenihan last year) and a flat rate of PRSI introduced instead of the tiered system in place now

3. Abolition of rent tax credit & rent-a-room relief

4. Further reduction in the amount of deductible mortgage interest allowed against rental income - probably down to 50%

5. Removal of the €10K tax free threshold for minding children in your own home.

6. Employer's PRSI to be increased, at least for lower paid, possibly to a flat rate of 10.75%

7. Removal of a few small tax credits, eg bin charges

I would like to see the removal of the PRSI ceiling and also I would like to see a higher tax rate introduced for salaries over say €75K. I would also like to see a minimum rate of tax introduced that everybody has to pay, chargeable on income before any losses or reliefs reduce that taxable income to NIL.
 
Has the government commited to reducing the tax relief on pension contributions?
I would be interested to hear what this would save the government, particulary if they intend to apply it to the pension levy for public sector workers.
 
A brave and sensible move IMO would be as intimated, to introduce some measure of income tax for those who don't pay. The lesser of many evils in lots of ways.
 
DB74 said:
I would like to see the removal of the PRSI ceiling and also I would like to see a higher tax rate introduced for salaries over say €75K.
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Would you like to drive people that earn over 75k out of the country? The highest rate of tax is already 56% - and you have to remember that people who earn that kind of money are pretty mobile. Why would they stay here, when they can get a far better deal not too far away?
 
Caveat said:
A brave and sensible move IMO would be as intimated, to introduce some measure of income tax for those who don't pay. The lesser of many evils in lots of ways.
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DB74's suggestion would probably be the best way to implement this - everybody, regardless of income, must pay x%. This is currently done at higher incomes (where I think there is a minimum of 20% payable) but, if introduced across the board, would bring in a large amount of tax as there are many people currently outside the tax net.
DB74 said:
I would also like to see a minimum rate of tax introduced that everybody has to pay, chargeable on income before any losses or reliefs reduce that taxable income to NIL.
Click to expand...
 
Bringing low paid workers into the tax net (which I aggree with), should be done in conjunction with lower social welfare rates. Otherwise it is going to make it unattractive for people to return to the workforce.
 
From reading this thread it seems many people are eager for tax increases.

Why?

I just can't understand it. We read about shocking waste of money, overpaid x, y and z, bank bailouts, NAMA, expensive blanket guarantees - and yet, people still want to pay more??? WTF.
 
shnaek said:
Would you like to drive people that earn over 75k out of the country? The highest rate of tax is already 56% - and you have to remember that people who earn that kind of money are pretty mobile. Why would they stay here, when they can get a far better deal not too far away?
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Where do you think these people are going to go exactly? You think they will walk into a job in England that is just as well paid? Most will have families and other commitments that are not all that easy to just walk away from, not to mention the fact that they will find it tough to sell their houses. This idea that people earning over €75K are all going to up sticks and leave is crazy.
 
umop3p!sdn said:
From reading this thread it seems many people are eager for tax increases.

Why?

I just can't understand it. We read about shocking waste of money, overpaid x, y and z, bank bailouts, NAMA, expensive blanket guarantees - and yet, people still want to pay more??? WTF.
Click to expand...

Hear hear - but if you read the posts - most people want other people to pay more :)
 
shnaek said:
Would you like to drive people that earn over 75k out of the country? The highest rate of tax is already 56% - and you have to remember that people who earn that kind of money are pretty mobile. Why would they stay here, when they can get a far better deal not too far away?
Click to expand...

75K is an arbitary figure and by no means a fortune. There are plenty of people earning that level of income who are not mobile. If you go through the households of the middle-class suburbs, you'll find plenty of people in that net. To suggest they will all uproot their family and sell their houses and emigrate to avoid a further reduction in household income, is risible.
 
umop3p!sdn said:
From reading this thread it seems many people are eager for tax increases.
Click to expand...
No one is eager. I just believe that the government is incapable making the required cuts, leaving tax increases as the easy get out. Of course there is only so much you can raise from taxes before the law of diminishing returns ticks in. Just look at the lack of what was done with Board Snip report etc etc.

'They' have stated numerous times that the number of lower paid people who are not paying tax is a problem. That is why I have listed the cuts in the above allowances, they will bring in more tax from the lower paid, but not have much effect on the higher paid, except from the removing of the PRSI Employee ceiling or PRSI Holiday as Charlie McCreevy calls it.

I remember a budget about 10 years ago, when they increased the tax allowances/bands so much that someone who was on an average industrial wage was about £2,000.00 (IEP) better off. It was seen as a good budget, I wondered how they could afford it at the time and how they could reverse it. Well now the time has come.
 
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