Are some Private Sector workers using their colleagues misfortune....

Sand

@jake59

No i definitely pay tax. So for arguments sake in my job i generate income for the government. So on a weekly basis i more than pay my way within the 'company' then i shouldn't have to pay taxes at all because i have already made money for the government through my normal weeks work.. It doesn't work like that Gunner. My taxes go right into the same big pot as yours. Public sector pay is not all the government spend money on .

This has already been cleared up?

From your perspective its tax, in reality its just recycling money through accounts.

Look. I am the state. I give you 100 Euro. You give me back 20 Euro in "tax". Are you giving me any money I didnt have before? Would it have made any realy difference to the final situation if I had just kept back the 20 Euro in the first place? No.

Now. I am still the state, but you are working in the private sector. Your boss gives you 100 Euro. You give me 20 Euro in tax. Now, you are giving me money that I didnt have before. It was your bosses 20 Euro, now its mine.

Hence, whilst public sector workers see tax being deducted from their wages, its just accountancy. The public sector does not and cannot support itself from taxes in the public sector. It is entirely supported by revenue taxed from the private/real economy. This is not a bad thing: The real economy is there to make money for providing services. The public sector exists to provide services/administration the state has decided to retain for itself.

Actually, it might be more efficient for public sector employees to be made exempt from basic income tax and have their pay adjusted in line down. The state might save money spent on administering what is essentially a pointless money laundering exercise?

johnnyskeleton

Liam79 wrote: »

Are there some/many employed members of the private sector using the current situation to their advantage.

Are there some/many private sector workers on boards who have not taken any cut in their hours/pay but are playing the poor mouth just cos they are in the private sector so they know they are practically bullet proof from criticism right now?

Are their some/many well paid private sector workers in here preaching to lower paid PS workers about cuts, when they have not taken any themselves, certainly not to the extent of the PS, safe in the knowledge that if the PS worker defends themselves...the Private sector worker can reply with blood curdling cries of "job cuts....dole queues..40% drop in wages" when in fact, in many of these cases, none of it is relevant to them?

Is there?

Let's say I work for a private company that had a turnover of €2m and expenses of €1.8m in 2006 and I was paid €40k p.a. Let's say that it traded well over the last few years because it was in a recession proof industry so it was still making €2m with expenses of €1.8m and I was still earning €40k p.a.

Now let's say that there was another company that had a turnover of €2m and expenses of €1.8m in 2006 and it's workers earned 40k p.a. in 2006. But it has suffered badly and now has turnover of €1m and the same expenses. Obviously the workers are going to have to take pay cuts, down to maybe 25k p.a.

So why is it that a different type of organisation which had turnover of €45bn and expenses of €43bn in 2006 and now, due to the recession has a turnover of €32bn and expenses of €60bn, yet thinks that it's workers are immune from cuts?

If the government was still balancing its books then there would be no need for cuts. If it was taking in more than it was spending the PS would argue for pay increases. This is also true for a private company. So why is it not the same on the way down for the government?

Dublin_Gunner

Jake - just to clear something up. I wasn't stating the tax situation to have a go at Public Sector workers, in fact, nothing I have posted was to have a go at the Public Sector at all.

The Public Sector is NEEDED, and needed badly, we couldn't function without it.

The problem is, its horribly inefficient, and that needs to be addressed.