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BUDGET 2009
IRISH TAX SUMMARY 2009
FINANCE ACT 2008
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FINFACTS
NEWS REPORTS:
Irish
Budget 2009 Analysis: Lenihan's "call to patriotic action"
Lots of taxes but no serious reform; The
rainy day has arrived and the cupboard is bare
Reactions from Economists, Accountants and
Various interests/organisations
RECENT REPORTS:
Government estimate of 2009 deficit almost €15bn - before Budget
changes; Houses of Oireachtas costs to rise 12.3% - up 61% in 5 years
Irish Economy: Davy says economy will shrink by 3.5% in 2009 - the
biggest plunge since 1950's; National debt to soar
Comment: Spreading the real pain of political self-interest,
incompetence, negligence and laziness
Irish Economy: State bank guarantee tolls the
death knell of the Celtic Tiger; Fairytale ends
debunking the myths and exposing the reality of
foundations built on quicksand
Irish
Public Spending: Pre- IT/Web official policy
prevails - hide as much information as possible
from taxpayers
Irish Exchequer Returns for September
show deficit of €9.4 billion compared with €3.1 billion in September
2007
Budget and Economic Statistics Ireland
- 2008 Economics &
Financial data to 2008; Multi-year data covering a multiplicity of
areas.
In stark terms, a government with public finances
boosted by an unsustainable housing boom, which failed to reform and
provide world class public services, while allowing public spending
expand at annual double-digit rates, has left itself little choice today.
Department of Finance
figures show that the General Government Balance (GGB), as per the Euro
Stability and Growth Pact, will be in a deficit of €13.3 billion or 7%
of GDP - - more than double the annual deficit permitted by the rules of
the European Monetary system. These figures are prior to changes to be
announced in the Budget.
Since 1997, current spending has risen by 150% and by more than 50% since 2004,
during the period when Taoiseach Brian Cowen was Minister for Finance.
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Taoiseach Brian Cowen (r) rings The Opening Bell at the New York
Stock Exchange on July 16, 2008
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Minister for
Finance Brian Lenihan says Irish People and Fine Gael to
Blame for Out-of-Control Housing Boom |
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Minister for
Finance Brian Lenihan who with colleagues was both a
cheerleader of, and supporter of incentives that turned the
housing bubble into an out-of-control super-boom, passes the
buck to the Irish people and Fine Gael Party on an RTÉ Radio programme
on Saturday, Sept 06, 2008:
“You know, we’ve got to be honest about this as a
people. We decided, as a people collectively, to have
this housing boom. We decided not to have property
taxes, to demand reductions in stamp duties, to demand
interest for those who bought to-let properties, and
there was no questioning in any part of the political
system about that,” said Lenihan. He went on to
suggest the Government had acted prudently on the
housing front by ignoring Fine Gael demands for further
stamp duty reductions.
“The Government, if anything, held a very firm line in
the last election on the stamp duty issue against
Richard Bruton and his party who wanted to do a massive
further installment of stamp duty reduction, that would
have given us an even bigger headache and an even bigger
hangover now.”
Taoiseach
Bertie Ahern in 2007:
In
April 2007
he said:
"On
the other side of the election we'll get back to
normality. And I think that normality will be the soft
landing. The construction projections were that we will
move from something like 93,000 houses to 80-something.
Now that's not going to create any kind of a
difficulty."
In
July 2007
he said:
"Sitting on the sidelines, cribbing and moaning is a
lost opportunity. I don't know how people who engage in
that don't commit suicide because frankly the only thing
that motivates me is being able to actively change
something."
In
September 2007 he said:
"But
there is no place for negativity. No need for any
pessimism. Above all, there is no place for politically
motivated attempts to talk down the economy and the
achievements of our people across all sectors."
The Buck Stops Nowhere in the Irish Political System |
Comment - Cowen calls for "political will and action" on day recession is
confirmed
Irish
economy is in recession following contractions of GDP in both the first and
second quarters of 2008; First full year contraction since 1983 expected
Irish Economy: Ireland is faced with new challenges as the US financial sector
faces retrenchment and transformation
Whitaker Tribute Conference: International academic says Ireland’s economic
institutions “seem inherently quite vulnerable to corruption, special pleading,
‘jobs for the boys’ and other such undesirable distortions"
Economist proposes 10-point plan that is a menu
without prices
Irish Services Strategy Group Report: Political
whitewash ignores overwhelming dominance of foreign-owned firms in
Irish service exports thereby neutering strategy for Irish firms
Irish Economy: Irish media and holding ministers to
account
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During the boom. the Government collected an average of
€100,000 from every new housing unit built in the State.
Political leaders operated as if they had found the formula for
permanent prosperity and they got the biggest percentage rises
in public pay . Source:
Goodbody Stockbrokers |
Ireland's Exchequer deficit expanded to €8.4 billion in August signalling
sharp deterioration in the Irish public finances
Analysis: Irish Economy - Cowen and the 100 days' milestone - a Political
Pygmy amongst the Oireachtas Lilliputians
Taoiseach Brian Cowen returns from Rip Van Winkle's Land
Irish National Employment Survey says average hourly earnings
in the private sector in October 2006 were 67.2% of public sector average
earnings
Irish Live Register: Numbers increased in August by 9,100 to 235,100 -
increase of 73,178 +42.0% in year; Highest addition in 41 years
Irish Service Economy: Rates of decline of activity and new business
accelerated in August; Contraction of activity in each month since February
2008
International house price comparison index for 2007 ranks Dublin, Ireland
and Beverly Hills, California for world's most expensive comparable
management level family homes
Irish redundancies rise 36% in 2008 to 23,545
Average Irish national house prices fell by 9.7% in year to July
Irish Manufacturing PMI rose in August but still signalled marked
deterioration in business conditions
Davy
says Irish economy is in a painful recession; Calls for a pay freeze in
return for tax rebates
Central Bank says annual growth rate of Irish residential mortgages dropped
to 9.6% in July - the lowest since December 1987
Trips by overseas visitors to Ireland fell 3% in the year to June: Numbers
from the US dropped 10% and UK visitors fell 8%
AIB’s loan book is between 60% and 70% exposed to the property sector; Bad
debt losses at Ireland's top three domestic banks may peak at almost €5.2bn
over the next two years says Goldman Sachs
Report by the Irish Small Firms Association says small businesses in Ireland
lose on average €793 million per annum through absenteeism
Irish Consumer Sentiment Index rose slightly in August
Irish Retail Sales volume plunges by 5.2% in year to June
Irish property-related lending increased at its lowest rate since 1997 in
June
Irish directors’ pay rises by 12% in 2007; Total remuneration up by over 30%
- Fixed salaries for executives in the US up 4%; European rises in range
3.5% to 7.5%
Falling immigration is slowing Irish population growth
Quarterly National Household Survey: Irish unemployment rate rises to 5.1%;
Non-Irish national labour force growth falls to 25,700; 24,800 unemployed
non-Irish nationals
Supply of Irish rental accommodation doubles and rents fall
Numbers employed in Irish Construction down 15.2% in June
Irish average national house prices fell by 0.6% in June according to
permanent tsb / ESRI House Price Index ; Prices down by 9.7% in year to June
but survey likely understating actual decline
IBEC
would support reintroduction of Irish third-level tuition fees
Davy
says Irish Tourism troubles are threat for economy and banks; Hotel bedroom
numbers jumped from 26,000 in 1996 to 64,500 in 2008 - a surge of 150% -
while tourist numbers rose just over 70%
Irish Construction Sector contracted rapidly in July as pessimism increased
and cost inflation accelerated
Volume of industrial production for Irish Manufacturing Industries fell 3%
in three month period April to June 2008
Irish Consumer Price Inflation fell to 4.4% in July following big drop in
clothing, footwear and furniture prices due to summer sales
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