Cuts and taxes in Budget 2014
Sir, – In the Budget, Michael Noonan renewed the Capital Gains Tax scam, whereby, provided a speculator/investor purchases before 2015, and does not sell that property on for seven years, that speculator/ investor pays no capital gains tax, creating a revenue loss for the Exchequer.
Ireland’s economic collapse was exacerbated by over-reliance on a housing market driven mad by speculation, driven in large part by stimulus in the form of unnecessary tax breaks.
The same now appears to be happening again in certain areas of Dublin. A shortage of houses for sale is claimed. This is not true. Family buyers requiring a mortgage are outnumbered approximately two to one by “cash” buyers. These “cash” buyers are being drawn into the market by the above scheme and outbidding families seeking to buy a home.
The net effect of this is to artificially push up demand and therefore prices. High house prices are detrimental to the economic recovery and societal health of the country. They drive up the cost of mortgages and rents and ultimately wages, as workers struggle to pay the higher cost, making Ireland less competitive on the world market.
This unnecessary tax break should be scrapped in the Finance Bill, as it does not stimulate jobs growth or add to the economy. In fact, due to the restriction on selling for seven years, it is artificially creating a shortage of houses for working families seeking to purchase a home
A cynic might also suggest that it is being paid for by pensioners who are losing their phone line rental allowance and also in many cases, medical cards. – Yours, etc
Royal Oak Road,
Sir, – I would take issue with the heading on Miriam Lord’s article: “Budget . . . fails to outrage” (Budget 2014, October 16th).
Leaving aside the impact that the new 41 per cent DIRT tax (almost 45 per cent once the PRSI element is included) will have on the meagre income supplements pensioners and others derive from their hard-won savings, a glance at the tables on pages 8-9 of Budget 2014 supplement shows that the two groups with the highest incomes suffer no after-tax loss of income, while pensioners, single-income families and low income earners will all suffer such a loss.
Outrage indeed! – Yours, etc,
Maynooth, Co Kildare.
Sir, – I hope that the “socialist” “partner” in our Government is proud to have collaborated in a Budget that has punished the Irish people from the cradle to the grave.
Then again, I suppose we should be grateful that they and their partners in power haven’t yet found a method to punish us from conception to the after life. – Yours, etc,