ubiquitous
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2002 actually. 2001 was the year of the short tax year (5 April - 31 Dec)
Budget 2009
- Thread starter agadele
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2002 actually. 2001 was the year of the short tax year (5 April - 31 Dec)
I expect that they will go against all impartial, learned advice and try to "stimulate" the property market with first time buyer grants to try and appease their vested interests. Stimulating the property market is what has gotten us into this mess and that is what they will continue to do.
ubiquitous
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There are very good reasons why it is untouchable. It is widely acknowledged that it contributes massively to employment in the multinationals despite your generalisation to the contrary.
Raising the rate is off the agenda as (1) it would reopen all sorts of issues with the EU who would frankly prefer if our CT rate was 25%-30% (2) it would create the perception that governments are going to gradually increase the rate towards those levels over a period of time, thus defeating its purpose in the first instance.
So in other words make the poor poorer and the rich richer .
It is well established that high tax rates slow the economy generally (why work harder and take risks for less gain) and ultimately effect the worse off. High tax rates are (one of) the large reasons this economy was crippled in the 80s
But you could make the argument about employment creation with regard to other taxes as well but they Government will still look at raising them. I am not talking about putting them up to 20% but why not look at the possibility of a small increase.
My point remains. Why do we assume that touching the corporation tax rate will lead to every multi-national company packing their bags and leaving the country in a big sulk. Why haven't they left already? Estonia is offering a 0% tax rate. As I said before the IFSC has grown since 2005 when the 10% corporation tax rate ended and went up to 12.5%. My own company's assets have gone from €1 billion to €4.5 billion and we have gone from a staff of 5 to a staff of 13.
I would also make the point that Ireland will have to look at it sooner or later because Countries like the UK and the US are getting increasingly annoyed at companies using Ireland as a tax base. It is only a matter of time before the US makes it harder for American companies to use Ireland. Last weeks decision of Henderson Asset Management and Charter Engineering to move their headquarters here is a perfect example. They are creating zero employment here and it damages our reputation.
As a compromise, how about making it that the low tax rates only apply to companies that create a certain number of jobs instead of any company that simply hold their board meetings here.
Again I could be totally wrong but I just wonder why everyone discusses raising every other tax except this one.
ubiquitous
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Yes but the State actively markets itself to transnational corporations using what it sees as its "USP" of the 12.5% Corporation Tax rate - not our income tax rates, our vat rates, our PRSI rates but our Corporation Tax rate.
Who made that assumption?
Can you provide a source to support this latter contention?
Ditto
I always wonder why other countries (that are generally "pro free market") get miffed with Ireland's low tax rate.
There's an easy solution for them; drop their tax rate, - but no they want to have their cake and eat it too.
There's an easy solution for them; drop their tax rate, - but no they want to have their cake and eat it too.
ubiquitous
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The paradox is that tax cuts usually increase tax revenues and tax increases do the opposite.
Z
z103
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What percentage of Estonians speak English? If English was their mother tongue, and with 0% corp tax, then I suspect that every multi-national would leave Ireland. The multi-nationals are only here for the low tax. What else is here for them?
But you are contradicting yourself. According to you they are here for the tax AND the English speaking workforce
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z103
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Okay, they are only here for low tax and English speaking work force.
Yes indeed. They should cut corporation tax, employer PRSI and VAT. But they usually do the opposite of what they should. When the economy was booming they stoked it further and now that it is fading rapidly they will starve it of oxygen . . do they not realise that their job is to even out the peaks and troughs rather than compound them?
I cant see them raising corporation tax - would be economic suicide.
On income tax, remember that not raising the limits, credits etc in line with inflation equates to a tax increase which isnt visible. I would expect PAYE income tax to remain the same, which is really a 4% increase when inflation is taken into account.
My prediction is to expect loads and loads of eco-taxs - carbon tax, waste tax, pollution etc. under the PR guise of being environmentally friendly. With the Green's in power and money needed, these are a certainty.
I'd expect PRSI ceiling to be abolished or increased.
I see no changes in max rate of VAT, though could be tweaking of other rates.
The Book of Estimates is now part of Budget Day, so I'd expect some savage cuts in Government spending. Government has already announced a 3% cut in current spending for remainder of current year. Cuts may not be as deep in the infrastructure area, as to do so would cripple us for years and hit the construction industry harder. I'd expect them to be in services - and presented as "efficiencies". Inevidently, in the likes of the health sector, the staff will not impliment more efficient work practices and so the punter will be hit.
I see non-essential Government spending being hit most - arts, sport, culture etc. Dont expect to see the likes of Abbotstown anytime soon.
I see a few ill advised schemes to help the building industry which will hit the taxpayer in the pocket and slow our recovery.
I see the Government trying to save money short term by converting more capital projects into concessions or public private partnerships which have the effect of collecting money from the public for usage or spreading the initial outlay over a period of years.
Unfortunately I dont expect to see any ingenuity in the upcoming Budget that will soften the blow for everyone. Cowan's just not a risk taker.
On income tax, remember that not raising the limits, credits etc in line with inflation equates to a tax increase which isnt visible. I would expect PAYE income tax to remain the same, which is really a 4% increase when inflation is taken into account.
My prediction is to expect loads and loads of eco-taxs - carbon tax, waste tax, pollution etc. under the PR guise of being environmentally friendly. With the Green's in power and money needed, these are a certainty.
I'd expect PRSI ceiling to be abolished or increased.
I see no changes in max rate of VAT, though could be tweaking of other rates.
The Book of Estimates is now part of Budget Day, so I'd expect some savage cuts in Government spending. Government has already announced a 3% cut in current spending for remainder of current year. Cuts may not be as deep in the infrastructure area, as to do so would cripple us for years and hit the construction industry harder. I'd expect them to be in services - and presented as "efficiencies". Inevidently, in the likes of the health sector, the staff will not impliment more efficient work practices and so the punter will be hit.
I see non-essential Government spending being hit most - arts, sport, culture etc. Dont expect to see the likes of Abbotstown anytime soon.
I see a few ill advised schemes to help the building industry which will hit the taxpayer in the pocket and slow our recovery.
I see the Government trying to save money short term by converting more capital projects into concessions or public private partnerships which have the effect of collecting money from the public for usage or spreading the initial outlay over a period of years.
Unfortunately I dont expect to see any ingenuity in the upcoming Budget that will soften the blow for everyone. Cowan's just not a risk taker.
To be fair to the Government it is hard to justify raising taxes when you have a suplus of a few billion and then cut rates when you face a deficit of the same amount so smoothing out peaks and troughs is rather difficult! I take your general point though. Of course so far people have only concentrated on the revenue side of things. I still reckon like any company, there are savings to be made on the spending side for Ireland inc!
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A large part of smoothing out the trough would have been taking measures to slow the construction "boom", moreso than raising income tax rates i think, rather than taking measures to incite it further.
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z109
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What about the stable social situation, eh Reg, they're here for that too...
The CGT hiike to 40 has been talked as a possibility for years and maybe a good thing to swell the coffers quick especially as there will surely be lots of sales with many people seemingly struggling.
Also its about time drink tax was upped it never gets touched year on year and the publicans are just taking all the increases for themseves and making a killing so the state miht as well take some of it. Also they could up the cigarette duty too because Irish women need something drastic to stop them smoking for their own health and possible future generations they will possibly be giving birth too.
ubiquitous
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Except that CGT hikes reduce CGT receipts as people are incentivised not to sell.
The same effect happends with Gift/Inheritance Tax. They started to take in more money when this was reduced from 40% to 20%. People feel that they can live with paying 20%, but at 40% well....