There appears to be an inability in most people's minds to distinguish between the provision of essential services and the delivery of those services. They seem to think that if a service is to be delivered, it must be delivered by a public sector body.
Alright here my program for goverment
C.) The VAT will be put to 15% (standard) and 5% (reduced) the mimimum allowed under EU rules
Food: however the reduced rate is now also chargeable on food for human consumption, the 21.5% penal rates for savory snacks etc will be reduced to 5%. Alcohol however will be on the top rate of 15%
Lower VAT = lower tax revenues. How would you make up for the loss in revenues?
F.) Public Servants (before 1996) will have to contribute to their guaranteed pensions. A calculation must be made to assess the money that is needed to generate the pension entitlement which is than split by 60% for state and 40% for employee (i.e. if 100 € are needed the employee has to pay 40 €). This is similar to a private person contributing to a pension fund that should generate a certain income (which however we knowis not guaranteed). No % depending on income but a fair market value.
Please note that public servants pre-95 already contribute 6.5% of salary for their pension, plus the new levy.
You are talking about civil servants (30,000-35,000 or 10-15% of public servants).
I'm sure they are not perfect and some details need to be ironed out or even scrapped, but at least I have an idea.
Now that we know what this proposed new party is likely to do (wreck the country entirely) it might be time to abandon this thread.
Given the increasingly obvious FF mismanagement of the economy over the last number of years (for which I apologise as I voted them at least twice), Labours socialist agenda and Fianna Gaels 'say-anything-to-get-into-power' approach I'd like to put the case for the formation of a new political party.
What we've had until now is an oligarchy dressed up as a democracy but declared to be a Republic. So where will the new party position itself and any suggestions for a manifesto?
I'm going to go for centre right, more republican than democratic, and tipping towards being more right than centre.
Now that we know what this proposed new party is likely to do (wreck the country entirely) it might be time to abandon this thread.
... A lower VAT will result in more spending and hence in the creation of more jobs generating more income tax generating more spending in generating more VAT and hence more tax overall.
How come everybody else has failed to understand that? [I am trusting that you did the sums.]
Because the typical reaction is always "raise taxes" that is a natural instinct of politicans.
Lowering the VAT can on it's own not work, you also need to address other aspects of the taxation system (like income tax) and you need to be willing to introduce VAT on goods that currently don't have any at the same time. It's about distributing the tax burden more to a consumption level rather than an income level with so many exceptions that it's hard to do a tax return.
Vat is a regressive tax because it costs lower-income people a larger percentage of their earnings than those on higher incomes.
So lowering it has also a positive effect on those who have a low income because it increases their spending power.
Our politicians have been lowering taxes for years, to the point where we moved from being one of the highest-taxed economies in the developed world to one of the lowest-taxed.
Wriggle, wriggle. Now some VAT has to rise, and you make unclear suggestions about IT. I am flummoxed by your last sentence.
It's not necessarily regressive if you have different rates for different types of goods and services.
Your initial point was about economic effects, not about social justice.
I cleary said that this is my idea, at least I have one unlike out ride it out 360 degree turn goverment.This is voodoo economics.
A.) The tax system will be simplyfied with a flat 12.5% tax on all income to the average wage according to CSO figures and 17.5% on all income above that figure. No complicated reductions/credits/return. Flat it is.
This measure alone would have a very very positive effect on the economy.
Though I would prefer just a straight flat rate of e.g. 14% instead of 2 rates. We need to get away from the current tax/sw system whereby hard work is penalised and doing nothing is rewarded.
Assertion isn't enough. A big statement like that needs to be explained.
It would save a lot of money if we withdrew all social supports from people.
Assertion isn't enough. A big statement like that needs to be explained.
It would save a lot of money if we withdrew all social supports from people.
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