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Stamp Duty and Benchmarking
Read more about: Taxation
Brian Cowen has stated that if stamp duty were to be abolished, or reduced, the short-fall would have to be replaced with other forms of taxation.
This presupposes that stamp duty is critical to the supply of essential services.
Michael McDowell, in countering this statement, contends that government taxes are €3 billion in excess of current needs.
If we turn our attention to the upcoming deliberations on the 2006/7 benchmarking submissions, we can see where this €3 billion might be eliminated.
It has been established that the public sector—350,000 in number—are being paid 40% more than the private sector. In addition, their Pensions are being funded from a 1% impost on GNP—annually—a transfer which must be funded from taxation.
The public sector pay bill has increased by 8% since 2005 and public sector pay accounts for 40% of Exchequer spending.
It does not take a PhD in advanced mathematics to calculate that a reduction, by 40%—to equal pay in the private sector—the constantly stated demand of the public sector trade union bosses—Begg & O’Connor—would save 40%x40% of Exchequer spending.
Which seems to confirm the assertion of Michael McDowell.
Cut TD representation to 1 TD per 80,000 of population and the books would be balanced.
Of course, if the Mercedez-Benz were sold and replaced with some modest, 1 litre diesel cars and the Gulf Stream sold, the bill would shrink even further.
That is interesting, issues arise though with whether the pay in the private sector is sufficient to sustain a person. While it is not implausible to suggest a reduction in pay for public servants and a balancing between public and private surely private pay must be made take into account more than simple market forces.
which leaves the issue of living wage versus wage.
I reckon it may be more 20% of 40% if it were to be tried.
Being honest, i would only sanction a reduction of TD numbers if it were balanced by the reorientation and reorganisation of local government. The TD has a dual role despite the abolition of the dual manadate and if we are to have less TDs focussed on national issues the weight of local issues must be lifted from them and placed on a capable and resourced local government.
Successfully reforming and using subsidiarity as a principle would save time and money in governing, yet TDs would cease to have fiefdoms
Very good post SOS. WOnder is that McDowells plan
I have, on countless occasions, suggested that it is critical that TDs, following their appointment as a Minister of State, vacate ALL constituency work; clinics etc. to concentrate on their Ministries.
After all, their appointment is supposed to be for the benefit of the Total Population, not just the Local Issues in Kerry or Louth etc.
And I agree with Cian, in that Local Government needs drastic reform, both in resourcing - and I don’t mean parking ticket revenue etc.- and in the recruitment of young blood (see below).
There would be no better time than that immediately after the re-assignment of duties, following the appointment of a local TD to a central Ministry.
Presently councillors seem to stay in longer than de Valera!
For instance, in Dun Laoghaire, in dispatches, I still see the names of two women that served when I lived in the district 40 years ago!
What useful benefit can these women offer?
Even then, they only turned up for photo-calls, in Southside magazine, and were strangely unavailable when needed. One claimed that she was busy with her family!
So what attracts them to hang in for 40 + years? The Overseas Junkets? The Power?
Whatever, they must be well past their sell-by date.
Fragmentation has long been a problem in co-ordinating local government. Too many departments getting in each others way; failure to share ideas; duplication and wasteful bureaucracy.
If TDs could be persuaded to stay in their local Clinics & share the space,with the local councillors, in a dedicated Municipal Building, to include the judiciary & the gardai, there would be a possibility for the sharing of knowledge and the elimination of overlap & duplication.
Paper is very expensive, both in absolutes and in the destruction of trees.
A start could be made by Deputy O’ Cuiv, who might rescind his wasteful practices of having all paperwork printed TWICE (and ink is even more expensive).
SOMEONE MIGHT ASK HIM, PRECISELY, HOW MANY PEOPLE READ THE IRISH VERSIONS DAILY.
Tiochaigh an la!
Cian,
I raised the point about balancing the wages in the Public sector, with those in the Private Sector, because Begg & O’Connor MADE IT AN ISSUE, whilst bullying Bertie Ahern, in closed sessions with CORI & other un-elected eminences grises, to give them a 9% increase.
They never seem to see that balancing can be achieved by Reducing their demands.
And, of course, no one expects anyone to work for less than their market worth.
But the knock-on effect of general percentage increases is, like VAT, totally inflationary & feeds on the absolutes of that percentage.
One must go backwards to find the root cause of why this spiral of inflation has occurred.
And, of course, one inevitably gets back to HOUSING & the prices paid by speculators for serviced land.
And the vast stealth Taxes then levied by the Ministers of Finance
Reform is necessary and the only way one can tackle this is by Progressive Taxation - of those scarce resources - that will force those who hoard land & keep houses empty to release or PAY.
They can’t be allowed to keep their cake & eat it, even though they are floating the FF party machine with their Bungs.
Kenny ( Mr. Justice John, - not Enda) had the correct idea in 1963, just before the demise of the FF Government of the time.
That excellent idea was promptly rejected & binned by FG, the incoming administration.
In all probability it was petty jealousy, because it was not their idea.
SUCH IS THE STUPIDITY OF POLITICIANS.
A further point I neglected to mention in the matter of the Government having €3billion revenue from Stamp Duty, which Micael McDowell regards as being surplus to needs.
In each of the last two years, Cowen’s estimates of revenue receipts was wildly out.
So much for his competence, but the main point is that this windfall was regarded as an opportunity to increase spending.
And where?
In value-added enterprise? Research & Development; Improved Public Transport? Infrastructural Initiatives?
In a pig’s ass.
More public service “job”; increased social spending; more unaccountable benchmarking…..
Not one suggestion about giving something back to the overtaxed citizens.
Fianna Fail, like Labour, cannot get enough money to blow on their socialist dreams; their tinkering with peoples lives; the nannying; the endless interference in commercial activities; their greed; their big cars & expenses-paid junkets abroad, with their retinue of spin doctors; mistresses; hairdressers etc.
These people don’t know the meaning of prudence; restraint; common sense & competence.
The 21st Century in Ireland requires new blood in the body politic; professionally trained people; clever people who are capable of making decisions & sticking with them; articulate politicians who can project a sensible, easily understood message to the electorate.
Honest people, with integrity, energy & self-reliance.
They will be regarded as “elitist” by the begrudgers; perhaps arrogant (in its original Latin sense, from arrogare; to ask; to supplicate), as they needs must be to get a job done.
Not the superannuated Moral Midget & Ethical Pygmy, so eloquently described by Alan Ruddock in his excellent overview of Master Ahern in the “Sindo” on July 23rd last.