Irish Budget 2008: expecting lots of pain…

We’ve tried this before, but I thought today’s budget in Dublin would give us another chance to try out some a little more free flowing for Brian Lenihan’s big day in the sun. Favourite quote of the day so far (from Fergal O’Rourke, I think): “I don’t think this is the last of the bad budgets. Next year’s is going to be worse!”

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  • Greagoir O’ Frainclin

    It’s not such a bad budget overall, given the climate. Increases in Social Welfare and Old Age Pensions.

    Corporate tax stays the same to encourage investment and jobs.

    Cigarettes gone up.

    10% cuts for ministerial pay.

    Could have been much tougher!

  • Greenflag

    Given the international circumstances not a bad Budget . Should get the country through to spring anyway and by then theloner term impact of present events should be more discernable .

  • Greenflag

    correction to above ,

    ‘by then the longer term impact of present events above should be discernable.

  • the 10 euro departure tax will be recouped by the people flying to the US to escape ever more iniqitious VAT rates. People here in Ontario feel hammered by their sales taxes (13% total) and are horrified when told that Ireland levies 21 (now 21.5)

    DIRT is such a stupid tax, shades of the old socialist hatred of “unearned income” – it should be simply made a P60 and added to income tax so people on low incomes are automatically exempted while those on higher marginal tax rates pay more – especially now those deposits are guaranteed. The only thing stupider is stamp duty on cheques and bank cards – folk over here can’t credit that either.

    I’d prefer see the parking space tax as a BIK tied to market rates in the urban area concerned. A cutoff at an urban boundary may hit commercial property values disproportionately to another site down the street but over the boundary line.

    The income levy is dumb and will likely cause unnecessary complication to income tax calculation. Just create a supertop rate band and a minimum tax notwithstanding allowances to rein in those who have high incomes and good tax accountants.

  • bah – should read “iniquitous”

  • A reactionary budget straight out of the 1980s.

  • Cahal

    Developers bailed out. What a surprise.

    Irish government: the worlds last sub prime lender. Helping young people get into a life time of debt and years of negative equity. Great.

  • slug

    A regressive budget from the most right wing country in Europe.

  • Greagoir O’ Frainclin

    Saw the BBC NI news @ 10.25 tonight, where the Budget was mentioned. The presenter gave a brief rundown of what was taxed concluding with the Minister of Finance said that everyone was to be ‘patriotic’.

    Now I saw the Budget on RTE & TV3 news today, heard it on the radio, etc…as it was unavoidable, but no one made any reference to this comment at all by the Minister as the economics took precedence. FFS, sure it’s only certain folk up north that would have noted this. Who else!

  • Did everybody else miss the declaration of hostilities? —

    The 12.5 percent rate of corporation tax is an important element in our taxation system. It has been a cornerstone of our industrial development in the last decade. I want to emphasise that this rate of tax is not for changing upwards and it will continue to be a central part of Ireland’s economic brand.

    Now, that sounds just great to the booted-and-suited: every BigBiz pressure group will welcome it. Look! Here comes Ernst & Young already!

    Every ordinary RoI guy-‘n-gal should realise that promise will cost a total of two billion Euros next year. Your income-tax is up. Your VAT is up. Your excise duties are up. Your health tax is up. Your allowances are cut. Your employment is threatened. But business gets off again. So feel good about it!

    Meanwhile, it will have resonated at the Elysée Palais, where President Sarkozy sees this as a spanner in the works of the Franco-German plan, the objective of harmonization of corporate taxation across the EU (or, more desperately and more likely, across the Euro-zone).

    Just how often can the RoI spit in the face of the EU Big Boys (and, in Merkel’s case, Sassy girls) and get away with it?

  • How many divisions does the Óglaigh na hÉireann have? *

    Did everybody else miss Lenihan’s declaration of hostilities? —

    The 12.5 percent rate of corporation tax is an important element in our taxation system. It has been a cornerstone of our industrial development in the last decade. I want to emphasise that this rate of tax is not for changing upwards and it will continue to be a central part of Ireland’s economic brand.

    Now, that sounds just great to the bonused, booted-and-suited: every BigBiz pressure group will welcome it. Look! Here comes Ernst & Young already!

    Every ordinary RoI guy-‘n-gal should realise that promise will cost a total of two billion Euros next year. Your income-tax is up. Your VAT is up. Your excise duties are up. Your health tax is up. Your allowances are cut. Your employment is threatened. But business gets off again. So feel good about it!

    Meanwhile, it will have resonated at the Elysée Palais, where President Sarkozy must be intended to see this as a spanner in the works of the Franco-German plan, the objective of harmonization of corporate taxation across the EU (or, more desperately and more likely, across the Euro-zone).

    Just how often can the RoI spit in the face of the EU Big Boys (and, in Merkel’s case, Sassy girls) and get away with it?

    [* I am, of course, referring to Stalin’s rebuff to Pierre Laval, 13 May 1935, when it was suggested to him he needed to cosy up to the Pope.]

    [Is this the first recorded example of a footnote to a Slugger posting?]

  • Oh, s…..

    I’ve done it again.

    Sorry about the double post. Read the second, improved version.