A chara, – One of the more alarming aspects of the Budget was the revelation that the Government rejected the proposal to impose a three per cent increase in the universal social charge (USC) on earnings in excess of €100,000 “on the advice of the multinational sector” (Breaking News, December 5th).
This is alarming because it indicates an unsettling degree of influence on the part of that sector on the internal affairs of this country. The Government received plenty of advice from other sectors and chose to ignore it.
It is also alarming (but not surprising) that the Government (and especially its Labour component) would concede so meekly to advice which is patently arrant nonsense.
The basis of this advice was that the additional USC charge could imperil future foreign investment in Ireland. Ireland offers major attractions for inward investment (especially in the areas of corporation tax and availability of skilled labour) as reflected in the continued strong inflow of such investment.The fact that the Government would swallow the suggestion that an additional three per cent charge on high executive salaries in foreign firms might offset these advantages beggars belief.
Just two days after the Budget was announced, it was reported that the Irish operation of the American firm Boston Scientific earned pretax profits of $1.4 billion in 2011, on which it paid taxes of $64.9 million – an effective tax rate of less than five per cent.One expects it would have little trouble in coming up with the extra €6,000 which a levy of three per cent on a salary of €200,000 would yield. One also expects that the 50,000 or more people outside the multinational sector who earn in excess of €100,000 per annum will have been very happy with the multinationals’ intervention in this case. – Is mise,
Sir, – When wage rises were being granted under national wage agreements, I objected to them being percentage rises on the basis that the cost of a litre of milk or a loaf of bread is the same no matter how much you earn.
Now with the removal of the PRSI allowance, the reduction is a flat €5, giving a disproportionate greater percentage wage reduction to the lower paid, the reverse of the wage raises under the national wage agreements and the cost of a litre of milk or a loaf of bread is still the same no matter what your salary is. A fair budget – definitely not. – Yours, etc,
Sir, – The unusual disgruntled look on the cherubic face of Abbey Fortune (Front page, December 11th), singing beside her happy friends, sums up my attitude to Budget 2013. I can multiply her four years in this world by 16 to get my age. I can also, in my imagination, translate her “Bah-humbug” expression from times past to my own four-letter expletive relevant to the current fiscal debacle we are experiencing! No Ho-Ho-Ho for me. Bah-humbug. – Yours, etc,
Sir, – I would be grateful if any member of the Government could explain why the public sector will be receiving increments(pay rise) of €250 million in 2013, while the Government is allowing cuts to the carer’s respite grant? Every member of society has expectations, such as to be treated fairly. – Yours, etc,
A chara, – The context of the Budget is provided by the latest statistics available from the Central Statistics Office, for 2010.
1. The change in disposable household income from 2009 to 2010: The bottom 90 per cent of people had an average reduction of between €1,929 and €4,884 while the top (wealthiest) 10 per cent had an average increase of €4,870.
2. The change in the income distribution in Ireland over 30 years 1980 – 2010: In 1980, the bottom 10 per cent received 3 per cent of total national income. By 2010 this reduced to 2.06 per cent.
In 1980, the top 10 per cent received 24.4 per cent of national income. By 2010 this increased to 28.5 per cent. This increase alone is twice the total share of the bottom 10 per cent.
These statistics are taken from CSO data by Social Justice Ireland ( socialjustice.ie) and can be found on page 6 of their policy briefing Poverty and Income Distribution of July 2012.
These figures are shocking. This is serious injustice, shocking inequity. These statistics are on income alone; they do not deal with wealth possessed. We do not yet have statistics for 2011 and 2012, but it seems likely the trend will have continued. Those at the bottom have already suffered disproportionately. Those at the top have become significantly wealthier.
The Budget has good elements. It is a moral statement of our values as well as financial legislation. To ignore the above facts is immoral and shameful. In justice, in simple humanity, those elements of last Wednesday’s Budget which take more from those at the very bottom must not be implemented.
The statistics show that the government has real alternatives. A change shows not weakness, but strength of character. Dáil and Seanad must ensure the Government acts accordingly. – Is mise,
Sir, – Carer’s respite grant cut and €26 million removed from those with little to nothing. Funds handed out to sports clubs: €28 million. I believe that there was a good reason why money was not given to sports clubs for the last four years. It’s the economy, stupid! Government priorities remain unchanged – those in need lose, those at play win. – Yours, etc,
Sir, – I was not impressed by the letter from Minister Brendan Howlin’s Press Office (December 8th) informing us of the “cuts” our politicians have taken in the Budget. Moral authority to make hard decisions comes from true austerity at the top. Tinkering with allowances does not provide that authority.
May I suggest that our politicians, now they have 50 per cent less post paid Oireachtas envelopes each month ensure they do not use their reduced supply to send communications to constituents who have caring responsibilities.
If they do, they may find the communications returned with strong, but nonetheless appropriate comments, on the envelopes. – Yours, etc,
Sir, – I was surprised that in his Budget speech Minister Brendan Howlin ignored the very sensible recommendation of the Public Accounts Committee (PAC) in its report published on November 22nd to have an independent review group to set and amend politicians’ salaries, expenses, allowances and pensions.
Instead the Minister made token deductions to the present unacceptably high allowances and reduced by 50 per cent the monthly issue of Oireachtas prepaid envelopes. Politicians make the rules that govern their own conditions; a clear conflict of interest and it is taxpayers’ money. They want to keep it that way; to use an old cliche, turkeys don’t vote for Christmas. – Yours, etc,
Sir, – How about a tax on media commentary on the Budget? Let’s say €10 per thousand words, written or spoken. This won’t save the nation’s bacon, but it might put a lid on the hot air. – Yours, etc,