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Dublin: 13 °C Wednesday 19 June, 2013

Taoiseach refuses to speculate on Burton idea to raise PRSI

“I have absolutely no intention of getting dragged into your little game here,” he told Fianna Fáil leader Micheál Martin, who raised the issue.

Taoiseach Enda Kenny speaking in the Dáil this afternoon
Taoiseach Enda Kenny speaking in the Dáil this afternoon

TAOISEACH ENDA KENNY has refused to comment on a suggestion by Social Protection Minister Joan Burton that PRSI could be increased in December’s Budget.

The Taoiseach said he would not answer questions about what the government is planning for the upcoming Budget beyond a plan to see the deficit reduced to 7.5 per cent.

“I have absolutely no intention of getting dragged into your little game here,” he told Fianna Fáil leader Micheál Martin who raised the issue in the Dáil during Leaders’ Questions this afternoon.

I have no intention of speculating on comment arising from the matters that you raise. These are matters for the government to decide as a government and as a cabinet, and I would remind everybody that that’s in the people’s interest, that when the decisions are made by government in respect of the Budget that there should be then open and public debate. Beyond that I don’t want to go into it.

“Regretfully it’s not that i can’t answer your question, I have no intention of answering it,” he told Martin.

Martin had asked the Taoiseach whether he considered an increase in PRSI to be the same as an increase in income tax, as an anonymous Fine Gael minister was quoted as saying in today’s Irish Times.

In a speech at the weekend Minister Burton said that the current level of PRSI being paid by employees and employers exceeds the benefits that are being paid out at the moment.

“It is clear to me that something has to give,” Minister Burton said. “We can either make a decision as a country to reduce the level of benefits that we wish people to have or else we can make a decision to properly fund that benefits both now and in to the future”.

enda july 3rd

Enda Kenny speaking during Leaders’ Questions this afternoon (Screengrab via Oireachtas website)

Budget 2013: The speculation so far

Burton: How many people have had benefits cut for not taking up jobs? Almost 900 >

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Comments (39 Comments)

  • That’s the PRSI going up so.

    Reply
    • And it is unbelievable to think of the lemmings that will line up and vote to keep Kenny in office so that we can endure three more years of this nonsense. So much for voting yes in the referendum.

      Reply
  • So , it’s in the bag ! Increased PRSI , reduced benefits no doubt .What a shower of unprincipaled idiots! Of course Joan and Kenny and the rest will be safe in their Ivory Towers.

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    • While not ideal raising PRSI and cutting social welfare at least it would be fair as everybody is hit a little bit. What’s the bets thou that they’ll continue the divide and conquer policies by Doing only one of the above.

      Reply
  • “I would remind everybody that that’s in the people’s interest, that when the decisions are made by government in respect of the Budget that there should be then open and public debate. ” Kenny

    So let me get this straight, when the FFg/Labour Government decide what they are going to do, we can talk about it… but the decision is made, and you can all talk all you want, we don’t give two fiddlers…

    Or how about this Mr Kenny …. We talk now, let you know how we feel, and you make your decision based on what we, the people Tell you.

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    • The people want the government to invest in much needed public transport like modern buses, trams and proper trains. Under FG and LAB, the country is cutting basic services to pay bondholders. Kenny’s party has always been pro-EU. Taxing the rich people over €70,000 would help close the deficit.

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    • “When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”

      Thomas Jefferson

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    • FG were elected on a manifesto that promised no income tax increase. A raising of PRSI is exactly that and would constitute a massive betrayal of the people that voted FG in February of last year. It was after all one of their key pledges that they repeated time and again. Government quickly loosing their mandate. Only 17 months in office and already roundly disliked for the break-neck U-turns they have performed in that time.

      Reply
  • So, answering a bloody question is “getting dragged into a little game” now, is it?

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  • It didn’t take FG long to become as arrogant as FF. In the parliament of our land, our elected leader refuses to answer questions and boasts that “Regretfully it’s not that i can’t answer your question, I have no intention of answering it”.

    He has forgotten that he answers to us, the people, and the Dail is just the forum.

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  • Paddy want’s to know Enda. Just answer the bloody question.

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  • Kenny is a slimey,sneaky poor excuse for a man never mind a leader he thinks he’s above answering to anybody, this country gets worse by the day, can’t even get out of it now cant get a passport if you haven’t paid household tax what a kip we live in worse than Russia

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  • Is that true that you can’t get a passport if you haven’t paid the household charge ??????

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  • Reduce the effing dole

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  • We do not have benefits, wake up!!

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  • To me, it seems like we are all expected to pay more and more for diminishing services..the lenght of time you could claim your stamps dropped, the lenght of time waiting for a public consultantion etc all increased…i assumed that this was what the PRSI was supposed to be funding

    By all means increase PRSI BUT make sure that people are getting the benefits of the increase, I can remember when I lost my job, I knew that friends who were on the dole were getting 204 euros a week…so me having just lost my job would maybe get an extra maybe 20 euros for the year until my stamps ran out…right? To me it seems bizarre that after paying many years of PRSI that i wouldnt be entitled to anything extra than someone who had never worked a day in their life….so if i was single, and after the year wasnt be evaluated on what my partner earns, what exactly was the point of claiming benefit, instead of assistance…just a word by the looks of it….

    If they want to increase PRSI, they sure as hell better go and improve the services and the benefits for those shelling out for it!!!

    Reply
  • The problem with E Kenny and his cohorts up in Dublin is that to a man they all lack those two items of a mans anatomy housed in the scrotum and good many of them lack the grey matter housed in the scull. All of them are totally bereft of the most prized of qualities. “common sense”.

    Reply
  • The rich must pay their fair share. They need to target high earners in the budget. Some of the posters on here are constantly trying to use parlor tricks and misconceptions on the impact of raising taxes to mislead to voting public. €80 K is rich since it is more money than what a person needs.

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    • Mark that person on €80k could well have a big mortgage do you want them to default on that if they get hit by a 3rd tax band?

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    • Kerry,

      Anyone earning above €80 K has no financial difficulty – I assure you. Raising taxes on rich would help reduce our balooning deficit. New taxes on the wealthy, restructure the tax code and approve short-term spending measures as part of a budget plan aimed at boosting job growth and helping the middle class.

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    • Mark, you have internet access and time to post comments on the journal. By the standards of most of the world, you are “rich”. I think we should tax you.

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    • Mark,

      A single individual PAYE worker on 60k pays 4 times the tax of someone on 30k. (though earning twice)
      A single individual PAYE worker on 90k pays 7 times the tax of someone on 30k (though earning three times as much)
      A single individual PAYE worker on 120k pays 10 times the tax of someone on 30k (though earning 4 times as much)

      How can you say that high earners don’t pay their share? They pay far income more tax than the lower paid.

      http://www.budget.gov.ie/Budgets/2012/FinancialStatement.aspx
      “The OECD have concluded that Ireland has the most progressive tax system of the EU members of its organization and Revenue records show that the top 5 per cent of income earners pay 44 per cent of income tax”

      Seems to me like the highest earners pay the most tax. Why are you going after PAYE workers? You think they should pay even more than now (which is progressively more than the lower paid already), just because they’re more successful than most people?

      I’ve established above how the highest PAYE earners pay the most income tax. The way the wealthy have a lower “effective tax rate” is because they have all sorts of schemes to take pay as shares (for which they used to pay lower CGT/CAT etc) and because they pay themselves in perks, and earn gains on their assets.

      Attacking PAYE earners, who don’t game the system, is unfair and misdirected.

      Reply
    • censored,

      I earn €35 K a year and unlike the filthy rich, I pay more taxes after my PAYE and pension is deducted. Most people aren’t earning anywhere near €80 K. The previous tax rises appear to be working now that revenue is ahead of target. Any further increase for high earners is anticipated.

      Reply
    • Ronan:

      Per the 2012 Index of Economic Freedom,
      Ireland, population 4.5 million, Income per capita $38,550/year
      Italy, population 60.3 million, Income per capita $29.392/year

      ———————————————————————————————————————–

      6 super-rich people who say ‘tax me more’:

      http://thedailyedge.thejournal.ie/6-super-rich-people-who-say-tax-me-more-436415-May2012/

      Raising taxes on rich would help reduce deficit. Any sane government will enact new taxes on the wealthy over €80 K, restructure the tax code and approve short-term spending measures as part of a budget plan aimed at boosting job growth and helping the middle class. It’s interesting to see some of the comments by you on here.

      Reply
    • Mark, a person on 80k pays a higher amount of tax than you in all of:n- Absolute valuen- percentage of gross incomennYour deflecting from my calling bull on you. Plug the incomes into any tax calculator and you’re wrong, but you throw out GDP per capita as an example to I don’t know what.

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    • Mark, if you think people earning 80k are the “super rich” then you’re even more naive than your comments suggest. This country already raises (over) 39 billion euros a year in tax. So here’s a simple question: how much tax is needed to keep Enda in the style to which he’s becoming accustomed?

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    • Bad argument Rónán. There is no differeance between a tax deduction or credit and a tax. They are two sides of the same coin. When Enda gives rich people a tax break, that means those of us who did not receive similar are paying more in tax than those who do. I.E. we are penalized for not earning more.

      When you give a family a tax credit for sending kids to private schools, those who choose not to buy private school services are paying more in tax than those who do. I.E. they are paying a tax price for choosing not to buy private school services.

      Spending is the engine of this economy, and when the rich hoard capital and add the double insult of paying lower tax rates through dividends and capital gains, it truly hurts our economy. The simplest thing to do would be to classify capital gains and dividends as income, taxed ad the marginal rate of the taxpayer.

      The solution is simple: force the filthy rich to pay their tax, no loop holes or off shoring of funds,just pay the damn tax. The filthy rich have a penchant of defrauding the very government that feeds them like those bloated government contracts,etc.

      Reply
    • censored 03/07/12 #

      Who are these flithy rich? Can they not afford showers?

      Reply
    • Tim,

      Quote me in any single place where I’ve spoken about anything other than Income tax paid by PAYE workers.

      I agree, we need to close the tax loopholes that allow the self-assessed to pay less tax. My only point is, the blunt instrument proposed of a 3rd rate of tax hurts those not gaming the system, and those gaming it will work around it.

      Introducing a new marginal tax rate only hurts PAYE workers. Removing so-called ‘tax expenditure’ (as you’ve suggested) hits those not paying their tax. I agree with you.

      Don’t put other words in my mouth. You’ve brought up tax expenditure as a new point. I agree with you on this point. This point has nothing to do with the headline rate paid by normal PAYE workers who don’t have kids in private school, and the rest of your examples.

      Reply
  • Hopefully people stop voting for FG, FF and LAB. Ireland needs a new government led by a combination of independents, sinn fein and the socialists.

    Reply

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