Budget 2009

There's been a lot of increases in stealth taxes already, with the cost of everything from a passport to getting a bar extension been raised

I also believe that the tax free allowances will not be changed this year, which will mean a tax rise in real terms

Not convinced there will be a 2% rise in income tax at higher rates and 1% at lower rates. Firstly that won't help people who are struggling and secondly there are council elections next year so it wouldn't help Fianna Fail on the doorstep

Definately big cuts in public spending which in some cases is no harm. I'd expect some infrastructure spending to be curtailed and postponed

Big question for me is if they leave income tax alone, will a carbon tax be added in some way and if so how much
 
leghorn said:
Do you know this for certain, or are you guessing?
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This is a highly educated guess, based on a number of things… There have been a number of plans to revamp the 'system' in recent years, but nothing has happened. For example a few years ago a lot of effort was spent on converting us to a UK style Tax Code system, in the end it was scraped as we have too many different allowances at employee level. Then there is the long running the plan to greatly simply the calculation of PRSI, this seems to have fallen apart/been delayed due to staff changes and decentralisation…
 
The tax system has been not so much revamped but turned on its head in recent years, as I pointed out earlier.

PRSI changes have nothing to do with the Budget, except to the point that they are sometimes announced on Budget Day. They are the responsibility of the Dept of Social Affairs.
 
aristotle25 said:
I dont agree with this at all. You shouldn't penalise those who have worked hard and have been successful. We live in a capitalist economy and risk\reward is important to it.

If taxes do need to go up then everyone should be affected.
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So in other words make the poor poorer and the rich richer .:mad:
 
Coughlan Let the cat out of the Bag - Budget is in some way going to try to prop up the property Market - Folly or Genius - Folly I suspect
 
Mpsox said:
There's been a lot of increases in stealth taxes already, with the cost of everything from a passport to getting a bar extension been raised
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It now costs €950 to become Irish (an Irish citizen), a big jump from the €127 it cost last week!


The simplest /stealthiest way to raise extra direct tax is by removing the Employee PRSI Ceiling as most people will not miss it unless reminded next year.

Note: For the purpose of this calculation I am assuming that the Health Levy is PRSI!!!

Example:
Employee on €60,000 per year, €5,000 per month. The ceiling is currently 50,700.
They pay A1 PRSI as normal Jan to Oct of approx €278.
In November they exceed the ceiling by €4,300, so pay PRSI of almost €106.
In December they just pay the Health Levy of 2%, so pay PRSI of €100.

So with stroke of a pen they can take in an extra €350 from that person, who unless they understand PRSI!!! may not be any wiser. So of course the more a person earns the bigger the 'tax increase' will be.

Whoops sorry Welfare, I forgot PRSI is not Tax....
 
ubiquitous said:
PRSI changes have nothing to do with the Budget, except to the point that they are sometimes announced on Budget Day. They are the responsibility of the Dept of Social Affairs.
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PRSI changes come from the Dept of Finance or more precisely the Minister..
 
heretohelp said:
So in other words make the poor poorer and the rich richer .:mad:
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No, if everyones tax is increased then how does that make the rich richer?

And in fariness even if you do earn 100k it doesnt make you "rich".
 
Rest Assured, some taxes will go up immediately, eg booze, cigarettes, fuel.

There's no point in the government bringing the budget forward if this is not going to happen, and yes there will be more stealth taxes.

They don't need a budget to curb public spending. They do to increase the amount of tax we pay.
 
ccbkd said:
Bravo - I propose an increase to 51% tax to those earning over €100,000
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Would you apply an equivelant tax on a two income family earning €50,000 each?

I'm not sure how an increase in direct taxes will improve the economy of this country if more disposable income is taken away from tax payers and given to the government (but maybe I'm not seeing the bigger picture :rolleyes:).

The economy is faced with multiple problems at the moment - contracting labour market, rising inflation, increased unemployment, increasing cost base for business, appreciating euro making our exports more expensive and falling tax revenues - taxing "high" earners at 51% won't solve our problems.
 
End the artists exemption. Make the big wigs pay their taxes i.e. close off all the loopholes and schemes they have used to avoid paying.
 
All highly dubious theories. Major changes have been made to the PAYE system in the past 5-8 years, including the full adoption of the tax credit system & the adoption of the Euro, all within the previous Budget timetable. Rates and bands have also been updated annually also on this timetable.
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Yes these changes have been updated on this time table. Payroll developers have had no choice. Often the changes are pretty substantial as well, like the PRSI €101000 ceiling (which changed twice) and the BIK implementation.

Three weeks to make the changes, test them and distribute them to our customers. This all happens during the Christmas period as well.
I welcome the early budget, as long as they are not hoping to implement Payroll changes early! - maybe we'll get to enjoy Christmas this year :D
 
With all the talk about raising taxes, why is it that Corporation Tax seems to be untouchable in that nobody even mentions the possibility of raising it. I am not talking about putting it up 20% but there must be merit to at least discussing a 1-2% increase.
 
sunny -- that would increase the cost of doing business (which is crazy as it is) here leading to more mutli-nationals moving abroad then more unemployement, or less starting up here. We should be reducing it to attract biz here to give more employment and generate more paye, and vat. I see no issue with low or zero corporation tax if the company provides high levels of employment

i know theres an eu tax thing etc...
 
dockingtrade said:
sunny -- that would increase the cost of doing business (which is crazy as it is) here leading to more mutli-nationals moving abroad then more unemployement, or less starting up here. We should be reducing it to attract biz here to give more employment and generate more paye, and vat. I see no issue with low or zero corporation tax if the company provides high levels of employment
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That argument is all well and good but the main companies coming here now for tax reasons are not creating employment. Look at the UK companies moving their headquarters here which will basically be a plaque on the door. I work for a foreign financial institution who came here for the tax reasons and has built up a sizeable operation. They would not pack up their bags and leave if corporation tax went up to 14% just like they didn't leave when it went up to 12.5% from 10%. If multinationals are going to move to Eastern Europe or India, they will more than likely do it for reasons other than tax because it is the other costs of doing business here that is the problem.

I am not saying it is a good idea. Just wondering why it has suddenly become an untouchable tax
 
ubiquitous said:
All highly dubious theories. Major changes have been made to the PAYE system in the past 5-8 years, including the full adoption of the tax credit system & the adoption of the Euro, all within the previous Budget timetable. Rates and bands have also been updated annually also on this timetable.
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There was plenty of notice for the change to the TC system and the short tax year, this was in 2000/2001 if memory serves me. The euro was a non event for changing computer systems, all do some companies made a killing on it. A simple batch process of running through databases and converting all monetary amounts, add a few currency fields to reports and if you felt like it adding duel currency reporting. Since 2001 the start of the tax year has been 1st January, with the budget in December. The only real change has been the extra PRSI class and the €100,100 PRSI limit in 2007 and they botched that.
 
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