There is no room for cutting taxes in 2018 or 2019

An excerpt from my pre-Budget submission on behalf of the Irish Taxpayer

There is no room for cutting taxes in 2018 or 2019



This might sound strange coming from someone writing to you on behalf of the Irish taxpayer. But with €200 billion of national debt and with multiple large risks facing us, the priority has to be running a significant surplus and bringing down our national debt.

You are making the same mistakes that Fianna Fáil were vilified for making during the Celtic Tiger. Back then the tax receipts were artificially high due to the property boom. And Fianna Fáil based their budgets on the assumption that these high tax receipts would continue forever. Your budgetary position is artificially inflated by temporarily low interest rates and temporarily high Corporation Tax receipts but you are spending money as if these conditions will continue forever. They won’t.

Tax cuts now would be short-sighted and not in the interest of the taxpayer as taxpayers would just be saddled with much higher rates when the next crisis hits.

You must bring down the national debt significantly before we can discuss tax cuts.

I would agree in general with this sentiment.

Brendan,

I agree with the basic idea that the state should not spend more than it can afford and off-load the cost to future generations, especially as inflation is unlikely to erode that cost as it has done in the past.

Nevertheless, state spending can expand the productive capacity of the economy. Schools, roads, etc all increase the potential of the economy. Indeed the major reason our debt is seen as having come under control over recent years is that the economy has expanded making the debt ratios lower.

cremeegg said:

Nevertheless, state spending can expand the productive capacity of the economy. Schools, roads, etc all increase the potential of the economy. Indeed the major reason our debt is seen as having come under control over recent years is that the economy has expanded making the debt ratios lower.

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Are you suggesting that State spending is the reason our economy is currently expanding?

Purple said:

Are you suggesting that State spending is the reason our economy is currently expanding?

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It is certainly a contributor to our current growth. And a lack of sufficient state spending lies behind many of the constraints on growth, lack of adequately educated employees, traffic build up, lock of housing.

TheBigShort said:

I would agree in general with this sentiment.

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As a union rep in the public sector, it's quite difficult to fight for wage increases if taxes were to fall isn't it?

Firefly said:

As a union rep in the public sector, it's quite difficult to fight for wage increases if taxes were to fall isn't it?

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Of course, but are you trying to make a point?

TheBigShort said:

Of course, but are you trying to make a point?

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Perhaps you have a vested interest rather than what is best for the country.

Firefly said:

Perhaps you have a vested interest rather than what is best for the country.

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I would of thought everyone has a vested interest in what is best for the country
Or at least what they perceive to be the best interests of the country.

Tell me, do you oppose Brendans proposal so?

TheBigShort said:

I would of thought everyone has a vested interest in what is best for the country

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I wish this were to be true however I believe a lot of posts are made in self-interest.

TheBigShort said:

Tell me, do you oppose Brendans proposal so?

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I am broadly in favour of it, however, I would like for there to be a relentless drive on efficiency on all government spending to cut out unnecessary costs. Any savings I would like to see spread to paying off our national debt, building infrastructure and reducing taxes.

Firefly said:

I wish this were to be true however I believe a lot of posts are made in self-interest.

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Firefly said:

I wish this were to be true however I believe a lot of posts are made in self-interest.


Broadly, however, I would like for there to be a relentless drive on efficiency on all government spending to cut out unnecessary costs. Any savings I would like to see spread to paying off our national debt, building infrastructure and reducing taxes.

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A while ago you were saying you would vote for it, now you are broadly opposed to this proposal of not cutting taxes? In whose interest is it that you would vote for these proposals but broadly oppose them at the same time.

TheBigShort said:

A while ago you were saying you would vote for it, now you are broadly opposed to this proposal of not cutting taxes? In whose interest is it that you would vote for these proposals but broadly oppose them at the same time.

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I meant I was broadly in favour of the proposal and have updated my post (it's quite easy to do actually).

Firefly said:

I meant I was broadly in favour of the proposal and have updated my post (it's quite easy to do actually).

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Id imagine so, but I don't have much call for it unlike yourself, that's twice today isn't it

cremeegg said:

It is certainly a contributor to our current growth. And a lack of sufficient state spending lies behind many of the constraints on growth, lack of adequately educated employees, traffic build up, lock of housing.

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I disagree; I don't think it's due to a lack of State spending. I think it's due to wasteful State spending. Paying teachers more doesn't make them better teachers. Great teachers an't get optimal results if they are constrained by a bad curriculum etc.