Thursday, February 17, 2011

Delicious: 55% tax rate

How to save money? How to cut spending? How to reduce debt to GDP?

Well part of reducing debt is increasing revenues. What better way than to raise taxes!

Reports are coming out that the Labour Party (IRE) favour a “pretty heavy” 55 per cent tax rate.

Does one reduce spending to reach targets? Or does one maintain but increase taxes. Labour Watch says "watch out!"

Fine Gael’s target was that of the €9 billion needed to hit fiscal targets; spending cuts would account for 73 per cent and 27 per cent would come from new taxation measures without increasing the standard or marginal rate of income tax.

So forget the fact that there may be inefficiencies, the solution is to tweak spending but increase taxes.....Really?!

Cash grabs include a :

The option of a local “site sale profits tax”, levied on the profit made from the site value on the sale of a residence, could be considered by local authorities in 2014, the document states. Measures to increase taxation on “import-intensive consumption” include a 25 cent increase on the price of a packet of cigarettes in 2012 and a €1 increase in excise duty on a bottle of wine by 2014, along with an extra VAT yield from banning below-cost selling of alcohol. Increases in motor tax are also proposed. Fine Gael would increase the second home tax to €300 per annum. Carbon tax would be increased to €20 per tonne in 2012 and to €25 per tonne by 2014, with an exemption for farm diesel.

Hmmm. Count me as one who doesn't favour hidden taxation throughout my economy.

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