SSIA Returns Reduction?

Andy Mc

In the budget the govemment should give people the option to pull out of the scheme at any time and not lose their 25% bonus.
The benifits of this are as follows:

- For the government they will save the 25% bonus for the remaining 3-4 yrs on the people who pull out of the scheme.

- For the savers who may need the funds it gives them the option to withdraw from the scheme and not lose their 25% bonus gained so far.

- For the economy it will help stabilise inflation as people gradually withdraw from the scheme over a period of 0-3 yrs. Can you imagine the situation as it stands at the moment with every man and his having €20,000 to spend at the same time. What will this do to car prices, house prices and inflation rates. Ther eis no way this can be allowed to happen.

A phased optional withdrawel therfore makes sense.

Andy Mc

davej

A phased optional withdrawel therfore makes sense.

Yeah I guess this makes sense, but all subscribers will not receive the benefits at the same time - it will be spread out throughout 2006 / 2007. Although admittedly something like 40% of all SSIA's were taken out in the last month it was available which could lead to a glut of money in the summer of 2007.

Also while a big spending spree could be bad for consumers it wouldn't necessarily be bad for the economy; depending on the conditions at the time.

davej

De Rebel

I heard that a preliminary estimate is that 20% will take the sum accumulated at the end of the 5 years and "use it wisely" - mainly investing it further, putting it aside for children’s education or loading it into pensions.

It is also estimated that if the government make “wise use” attractive in some way, this figure may be pushed out to 30%.

The rest apparently split 50/50 between (a) do one big bricks and mortar type thing e.g. house extensions, thereby fuelling another bad value bubble for the construction trade and (b) holiday of a lifetime, new car etc etc thereby fuelling inflation.

Oh and the only certainty is that whatever relaxation might happen, it will run until the next election.

Victor

Originally posted by Andy Mc
In the budget the govemment should give people the option to pull out of the scheme at any time and not lose their 25% bonus.

They would have to make the 25% dependant on the time the money spent in the system.

parsi

Originally posted by Cork


FF & PDs are pro business. They believe in low taxes.

Low tax economies are pro-business. However low taxes lead to low taxation income which leads to poorer public services whic leads to the expansion of privately provided services to fill these gaps.

So you may be paying less in txes but you are paying out other monies to private companies to provide the services that used be paid by your taxes eg health, refuse colelction, childrens facilities etc.

The PDs seem to have a mantra that tax is bad. They believe no-one should pay taxes. Thats grand for the rich set who have always paid for private services and don't want to contribute to public services. Its not so good for those who relied on the spreding of income through taxation to provide public services.

This country seems to be witnessing an erosion of the ethos of all taxpayers paying into the same pot and getting out the services they needed. Now it seems to be the eblieve that "I can afford private healthcare so why should I pay taxes to health ?"

Cork

The PDs seem to have a mantra that tax is bad. They believe no-one should pay taxes.

I think we need to get value for our taxes. I think we need efficency in our public services.

But too much tax on labour is a bad thing. I think that public services need to be improved. For instance - secondary school teachers getting 3 months paid holidays. Why?

Because kids were traditionally needed to help with the harvest?

Any changes to this will be opposed by teachers trade unions.

Are we getting good producivity from say teachers?

Yet many people in the public services are working a 9 to 5 on temporary contracts.