An interesting assessment Ronan and thank God for one that’s hysteria-free. I agree with you on income tax – we all watched the Budget from our newsroom as we were going to press that evening. The main reaction was a bit of griping about child allowance being cut (but nothing major) and a sense of anti-climax at the fact that most of us had gotten away scot-free. I think most people were prepared for a jump in income tax and few would have argued that it was unfair. Adding another 1% wouldn’t have seen any of us go hungry.
I think it should also be noted that this is likely the first of a series of harsh and unpopular budgets aimed at arresting the current economic slide. Ragardless of which party or parties are ruling the country this time next year, more tought decisions will need to be made.
I also think it should be noted that the dust hasn’t quite settled on this budget just yet. Today there are further threats from public sector unions of industrial action to come.
Hugh
,
An analysis that I would agree fully with. We can rest assured that Income Tax rates will have to rise next time round. However the invisible elephant in the room, is the overall size (and thus the cost) of the public sector. And, though it was gently floated at the weekend, the incredible salary levels at semi-state level needs some real attention. Not just the lunatic sums being paid by RTE to its top presenters, but the sums being paid by An Bord Gais, ESB and the other semi-state bodies.
The Fintan O Toole school of economics might like to explain how people on social welfare got by on 5% less in 2008 when the price level was 5% higher.
Regarding the lack of taxation paid by those on lower incomes, I’m glad you clarified it was income tax, because VAT is still an outrageous 21% and this hits the poor hardest. The lower earners are those also more likely to under pressure with mortgages. David McWilliams in today’s Independent spells this out.
We need cuts, maybe those income taxes, but the banks need to write off some of the peak mortgages too.
Brian
,
The Minister layed the groundwork for stringence for the last few months but may be temporarily abating as he will surely be adopting the same tactics for Budget 2011. I wouldn’t discount his talents for managing public opinion (deploying Aunt Mary and Conor to brief against the unpaid leave proposal).
Also, as a budget side note, delighted to learn the boundaries of unparliamentary language preclude uptown nightie boy and old farmer’s hand warmer.
But enough of your measured appraisals based on sound principles delivered in a succinct manner, won’t somebody please think of the Children! http://bit.ly/KyGQo
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Deirdre ,
An interesting assessment Ronan and thank God for one that’s hysteria-free. I agree with you on income tax – we all watched the Budget from our newsroom as we were going to press that evening. The main reaction was a bit of griping about child allowance being cut (but nothing major) and a sense of anti-climax at the fact that most of us had gotten away scot-free. I think most people were prepared for a jump in income tax and few would have argued that it was unfair. Adding another 1% wouldn’t have seen any of us go hungry.
Senan ,
I think it should also be noted that this is likely the first of a series of harsh and unpopular budgets aimed at arresting the current economic slide. Ragardless of which party or parties are ruling the country this time next year, more tought decisions will need to be made.
I also think it should be noted that the dust hasn’t quite settled on this budget just yet. Today there are further threats from public sector unions of industrial action to come.
Hugh ,
An analysis that I would agree fully with. We can rest assured that Income Tax rates will have to rise next time round. However the invisible elephant in the room, is the overall size (and thus the cost) of the public sector. And, though it was gently floated at the weekend, the incredible salary levels at semi-state level needs some real attention. Not just the lunatic sums being paid by RTE to its top presenters, but the sums being paid by An Bord Gais, ESB and the other semi-state bodies.
Ciaran Daly ,
The Fintan O Toole school of economics might like to explain how people on social welfare got by on 5% less in 2008 when the price level was 5% higher.
Regarding the lack of taxation paid by those on lower incomes, I’m glad you clarified it was income tax, because VAT is still an outrageous 21% and this hits the poor hardest. The lower earners are those also more likely to under pressure with mortgages. David McWilliams in today’s Independent spells this out.
We need cuts, maybe those income taxes, but the banks need to write off some of the peak mortgages too.
Brian ,
The Minister layed the groundwork for stringence for the last few months but may be temporarily abating as he will surely be adopting the same tactics for Budget 2011. I wouldn’t discount his talents for managing public opinion (deploying Aunt Mary and Conor to brief against the unpaid leave proposal).
Also, as a budget side note, delighted to learn the boundaries of unparliamentary language preclude uptown nightie boy and old farmer’s hand warmer.
But enough of your measured appraisals based on sound principles delivered in a succinct manner, won’t somebody please think of the Children! http://bit.ly/KyGQo
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