Can someone give a fact-based synopsis?

DeVore

If you post "we're fncked" or any other idiotic cr4p here, I'll site ban you.

I'm looking for someone or people to round up the facts here, to cut out the waffle and bottom line this.

The less opinion the better, just the facts ma'am

DeV.

sceptre

This any good? Read from 16:00 to 16:35 and it's nothing but facts/intentions.

The key fact that will interest more people than anything else is that the 1% income levy is now to be a 2% levy. And everyone earning over €15,000 a year will pay it.

johnnyskeleton

The biggest fact, hidden away in there, is that a new National Assets Management Agency is being set up under the agesis of the NTMA. It will essentially take over all non performing commercial and development loans from AIB, BOI and presumably PTSB NIB EBS etc. They claim they will persue the developers whose debts are transfered to them. The total alleged maximum exposure from this is 80-90bn euro, added to the national debt, but it is hoped that this will be reclaimed from the developers, from sales of the developments when the "property market picks up" and/or from a levy on the banks. This will also have a knock on effect on the cost of raising money on the international money markets. We will have to borrow up to another 80/90bn and pay interest on it on spec that we will at some stage reclaim this plus higher interest from the developers.

If you want to know what the long term implications are, what is likely to be done, and the estimated effects, you will either have to look at thepropertypin, or else siteban me. I hope it is not straying from the facts too much if I say that it is very, very big.

swingking

or this

A simple guide

mike65

My head is spinning, but it was just said on Today FM that in effect every tax cut since 1997 has been reversed.

Nody

Very limited cuts all around (major one being rent allowance, Christmas dole bonus etc.)
Limited tax increases (+5cent Diesel, 25c per 20 cigs, Levy increase as noted above)

Worse is to come, we're not at fault.

That sums it up reasonbly.

johnnyskeleton

You'll pay more income tax if employed. You will pay more on smokes, diesel, insurance. You will get slightly less social welfare if unemployed. If you have savings you will get less nett interest. If someone gives or bequeaths you money there are lower tresholds and higher tax. If you sell on an asset for a profit you will pay more tax. There are a few minor tax changes for second hand car dealers, residential developers, people who invest in nursing homes and private hospitals, people who deal in intellectual property rights and a new (please allow me one adjective) stamp duty scheme for trading in a second hand home for a new one. We are giving less in overseas development aid and there have been some minor cuts in several government departments.

The tax take should increase from c. €34bn to €35.8bn (assuming no changes to current wage rates) and government expenditure will decrease from €65bn to €64.2bn (assuming no further increases in spending during 2009 e.g. more people signing on).

nesf

Tax changes on income:

Levies doubled, but also importantly, the starting rate for each step up has been reduced. The 2% levy now starts around 15K. The 4% levy will now start at 75K (not 100K) and the 6% levy at 175K.

When I've a chance to read the document I'll put together a more detailed list of income tax changes.

DeVore

Links to external fact-sheets or synopsise/analyse it here.

Feel free to start threads on specifics you want to highlight on the forum though!

DeV.

nesf

johnnyskeleton wrote: »

DeVore doesn't want any opinions expressed in this thread, he wants it to be just a report of the facts. I can speculate as to what will happen but it is opinion not fact. DeVore has been trying to siteban me for a long time now, so I don't want to give him the excuse.

Eh, just start a different thread and start discussing the long term implications..

nesf

Oh and PRSI changes will substantially increase the tax take from people earning 50K+ with the rise in the rate and the ceiling.

DeVore

johnnyskeleton wrote: »

DeVore doesn't want any opinions expressed in this thread, he wants it to be just a report of the facts. I can speculate as to what will happen but it is opinion not fact. DeVore has been trying to siteban me for a long time now, so I don't want to give him the excuse. Discuss it here if you like:

http://www.thepropertypin.com/viewtopic.php?f=4&t=20507

Lol.... Johnny is kidding about wanting to ban him by the way...

Links to external sites are fine, but I'm just looking for someone to cut out the waffle and tell us the bottom line without projecting into the future what they will mean.

DeV.

djk1000

From the horses mouth,

http://budget.gov.ie/2009SupApril09/SummaryofSupplementaryBudgetMeasuresPolicyChanges.html

johnnyskeleton

nesf wrote: »

Oh and PRSI changes will substantially increase the tax take from people earning 50K+ with the rise in the rate and the ceiling.

Someone earning €76,037 will be hit with a 4% income levy, and will pay significantly more in PRSI (2.5% extra on the first 52k, the full whack (7%?, including higher health levy) on the other 24k). So every euro above 52k will now have an extra ~11% tax on it.

Villain

Main Facts are 1.5 Billion in cuts and 1.8 Billion in added tax income.

Carbon Tax, Property Tax and Tax on Child Benefit to come in December Budget.

The income levy rates announced in last October's Budget will be doubled to 2%, 4% and 6%.

The income levy thresholds have been lowered, with the 2% rate kicking in at €15,000, 4% at €75,000 and 6% at €175,000.

PRSI ceiling will rise from €52,000 to €75,000.

Capital Gains Tax and Capital Acquisitions Tax will both rise from 22% to 25%.

DIRT will go up from 23% to 25%. The levy on non-life insurance premiums rises from 2% to 3%.

The prices of cigarettes will rise by 25 cent and diesel goes up 5 cent a litre. The increases are VAT inclusive.

Villain

The early childcare supplement will be halved from 1 May, and scrapped altogether next year.

The Christmas bonus will not be paid this year, while those under 20 will have their dole payments halved.

There will be no increases in social welfare for the next couple of years, and rates may be reviewed later.

There will be a new scheme to allow civil servants over the age of 50 to retire. The scheme will begin in May. Those retiring will not be replaced unless sanctioned by the Department of Finance.

Dole halved for under 20s?


Can anyone confirm that for me?

Edit: Never mind. Cheers villan.

Vegeta

Villain wrote: »

Main Facts are 1.5 Billion in cuts and 1.8 Billion in added tax income.

Carbon Tax, Property Tax and Tax on Child Benefit to come in December Budget.

The income levy rates announced in last October's Budget will be doubled to 2%, 4% and 6%.

The income levy thresholds have been lowered, with the 2% rate kicking in at €15,000, 4% at €75,000 and 6% at €175,000.

PRSI ceiling will rise from €52,000 to €75,000.

Capital Gains Tax and Capital Acquisitions Tax will both rise from 22% to 25%.

DIRT will go up from 23% to 25%. The levy on non-life insurance premiums rises from 2% to 3%.

The prices of cigarettes will rise by 25 cent and diesel goes up 5 cent a litre. The increases are VAT inclusive.

Health Levy doubles to 4%

nesf

johnnyskeleton wrote: »

So every euro above 52k will now have an extra ~11% tax on it.

Something like that alright. I don't think anyone can say this Budget isn't progressive with respect to taxation changes.

BOHSBOHS

i can see a big problem in that the government hasnt reduced social welfare rates while hiking tax on people on the minimum wages
it increases the risk of poverty traps forming...

why bother working your arse off to get ~ €300 net
when u can kick back for €204 +allowances.

A-Trak

Does anyone know what the raise in PRSI means?
Can it be measured in a %

nesf

A-Trak wrote: »

Does anyone know what the raise in PRSI means?
Can it be measured in a %

Some sample tables here: http://www.budget.gov.ie/2009SupApril09/downloads/Annex%20A%20-%20Details%20of%20Income%20Levy%20Health%20Levy%20&%20PRSI%20changes.pdf



A point of interest is that if you are in receipt of a medical card you are exempt from the income levy. Which will spare some of the worst off from any tax increases.

bk

Hi there is an up to date tax calculator here (well it should work ok for those under €75,000), not sure about above, this will let you know your new yearly take home and all I can say is ouch!

http://www.hookhead.com/Tools/tax2009b.jsp

bigbadpat

3% Levy on non-life insurance will increase your Motor Insurance.

bobbbb

bk wrote: »

Hi there is an up to date tax calculator here (well it should work ok for those under €75,000), not sure about above, this will let you know your new yearly take home and all I can say is ouch!

http://www.hookhead.com/Tools/tax2009b.jsp

Must be something wrong there That says i'll take home more than i do at the moment even.