Stimulus measures

MadsL

Barack Obama's plan -1,071-pages, $787bn into the economy..
UK £20bn stimulus package
Japan $99bn stimulus package
G20 god knows how much...$1trillion?

Lenihan...

2 paragraphs and a sop to car dealers...

Notwithstanding the increases today, our tax system remains competitive and pro-enterprise in character. Last October, I introduced a considerable enhancement to our R&D tax credit regime. I also mentioned the increased importance globally of intellectual property. Accordingly, I propose to introduce a scheme of tax relief for the acquisition of intangible assets, including Intellectual Property as a means of supporting the Smart Economy. The details of the scheme will be worked on by my Department, in conjunction with the Revenue Commissioners, and will be published in the legislation giving effect to the Budget provisions. This measure will help to attract high quality employment to this economy.

To address the overhang of unsold properties, I am proposing to establish a Stamp Duty “trade-in” scheme. This will enable a person purchasing a new house or apartment to trade-in their previous property with the seller who will not be liable to Stamp Duty until they subsequently sell the traded-in property on at a later stage. Full details of this initiative will be contained in the forthcoming Finance Bill and it is envisaged that the scheme will apply from the date of publication of the Finance Bill to 31 December 2010.

I am also changing the way in which car dealers can account for VAT on second hand cars from July next.

Will any of these have ANY impact on the economy...? Discuss...what should he have done?

Soldie

Are you suggesting that the government should put us even further into debt by 'stimulating' the economy?

I think VAT should have been slashed to 15% to let people stimulate the economy on their own accord, with their own money.

MadsL

Are you suggesting that the government should put us even further into debt by 'stimulating' the economy?

I'm just drawing the comparison between other countries measures and Lenihan's 'stimulation measures' - if they can be called that as he has done.

The Govt seem content to take on €90bn of toxic debt, I just wonder what the alternatives could be:

As you rightly say a reduction in VAT would be a start. I'd also like to see money allocated to the 'toxic bank' used elsewhere, why not invest in Postbank instead and allow them to loan money to SMEs struggling for investment and overdraft facilities. The 'high street' banks can go to hell.

Peace

Until the SME's get money back in hand (be it through the banks releasing credit or other sources) we will not see a recovery in our economy.

The government kepp pointing towards their 'bailout' of the banks as them having done all they can do however it seems to have fallen short. They need to think outside the box of thowing money at the bank and hoping they will fix the economy for them.

is_that_so

"No mon no fun" as they say. Unfortunately we won't be in a position to create a stimulus package until we can sort out the structural deficit and public spending. You could argue that the most important proposal yesterday was that early retirement package for public servants.