Pay increases in the private sector have to be based on a corresponding increase in the value of the employee in question. The best way to increase net pay is to reduce taxes on work.
Hopefully not only will this report inform in terms of the coming budget but will segue neatly into the deliberations of the low pay commission & further into negotiations on partially restoring pay cuts in the Public Sector & pay increases in the Private Sector.
Hopefully not only will this report inform in terms of the coming budget but will segue neatly into the deliberations of the low pay commission & further into negotiations on partially restoring pay cuts in the Public Sector & pay increases in the Private Sector.
After having time to examine and reflect on the Nevin report the general approbation of same continues in the mainstream media.
The Irish Times in it's editorial headed " Tax and Fairness " opines that when the Government meets to consider taxation and spending measures in the coming budget - " The work of Dr Michael Collins of the Nevin Economic Research Institute may inform Government deliberations in that regard. "
Thomas Molloy in the indo states " It may be funded by the trade unions but the researchers are serious and trying hard to throw some light on parts of the economy that are often poorly understood "
Mr Molloy does point out that the ESRI findings in this regard are fundamentally different but that " The International Monetary Fund has also questioned the idea that the middle class is bearing the brunt of the financial crisis "
Hopefully not only will this report inform in terms of the coming budget but will segue neatly into the deliberations of the low pay commission & further into negotiations on partially restoring pay cuts in the Public Sector & pay increases in the Private Sector.
Another, and perhaps more important, caveat is that the study does not seem to take any account of benefits paid to the poor. Can somebody receiving free medical care and rent allowance really be said to pay any tax even if they do pay some taxes in the shape of VAT and excise duty?
When considerations such as these are excluded in calculations, it is difficult to place too much faith in the conclusions but that is not a criticism of the Nevin Institute
Mr Molloy also says
Just for the full picture, like!
I think sadly it will work, the people who decide tax policy stand to benefit.This is the precise goal of NERI, to quell public demand for tax cuts and thus facilitate a policy switch to pay hikes in the public sector.
It won't work. The tax burden on ordinary people is crippling and they are seething.
This is the precise goal of NERI, to quell public demand for tax cuts and thus facilitate a policy switch to pay hikes in the public sector.
It won't work. The tax burden on ordinary people is crippling and they are seething.
I believe that the pressure to partially restore pay cuts is overwhelming.
Soon people may seethe but the vast majority are accepting as recent history has proved.
If the political establishment go down this road and ignore the seething resentment against oppressive taxation, they will reap a bitter electoral and social harvest.
The Nevin Institute is the propaganda office of the Trade Union movement, nothing more.
It is deeply disturbing that RTE in particular do not challenge or highlight their agenda as they do, for example, when introducing representatives of the Iona Institute who is routinely referred to as a conservative right-wing think tank (which is what it is). Why is the Nevin Institute not introduced on RTE as an ultra-left wing Trade Union lobby group/think tank? They are far freer with the facts that the people from the Iona Institute.
Hi Purple
I heard it being introduced as a think thank funded by the Trade Unions on at least one occasion.
I emailed RTE about their response to the report and, as a result (?), they had Séamus Coffey on Morning Ireland this morning responding to it.
My main problem with the coverage, is that they all treated it as gospel.
I am writing a piece for the Sindo which, hopefully, will debunk it.
Brendan
With all due respect to your expertise Brendan I hardly think your inside piece is likely to unduly alter the positive perception of the Nevin report in the media to date - challenge perhaps but debunk may possibly be overstating what you can achieve particularly as the headlines have been written & they have indeed treated the report as gospel
I will of course read your piece with interest !
It's not just funded by them. That would imply some level of independence.I heard it being introduced as a think thank funded by the Trade Unions on at least one occasion.
The work of Dr [broken link removed] of the [broken link removed] may inform Government deliberations in that regard. His research found that, when all taxes – direct and indirect – are taken into account, the very wealthiest and the very poorest households surrender thirty per cent of their gross incomes to the Exchequer. The so-called “squeezed middle” are not so squeezed after all. In spite of well-articulated complaints, they pay less than 20 per cent of gross incomes. Reducing the impact of indirect taxes on welfare recipients may not be politically attractive, when compared to income tax cuts for those at work, but a fair Budget should pay attention to this issue.
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