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Dublin: 19 °C Wednesday 19 June, 2013

Noonan: ‘There’s no money tree out in the back garden’

The Finance Minister said yesterday that there is no unidentified source that the government can tap for funding to help close the deficit.

Michael Noonan speaking to the select sub-committee on finance yesterday
Michael Noonan speaking to the select sub-committee on finance yesterday
Image: Screengrab

FINANCE MINISTER MICHAEL Noonan has insisted that there is no hidden source of funds that the government can tap through new taxation measures such as a third rate of tax.

He was speaking to the Oireachtas sub-committee on finance yesterday during the committee stage of the Finance Bill when he insisted that Ireland has one of the most progressive taxation systems in Europe.

He said there was “no money tree out in the back garden” and “no magic beans” that the government could tap for money that could go towards closing the deficit.

“When I say money tree or magic beans what I’m really saying is that there isn’t any unidentified source that will yield an awful lot of tax in our country,” Noonan said, adding: “It’s not there, there isn’t this hidden source of tax.”

Sinn Féin’s finance spokesperson Pearse Doherty told the Minister that a third rate of tax at 48 per cent would yield €365 million but Noonan claimed that this rate would increase the top rate of tax by 7 percentage points.

He claimed that the effective tax rate would be 59 per cent for employees and 62 per cent for the self-employed as a result of such an increase.

Noonan said that such levels of taxation would be “counter-productive” and would “cause people to do different things with their money, move out of the country, certainly it would be a tax on jobs”.

The Minister agreed with the general principle that those who are better off should pay more but claimed that European Commission research had shown that Ireland had one of the most progressive tax systems of six countries it examined.

“That’s the facts of the situation,” he said adding that Ireland’s system of taxation was “extraordinarily progressive and we can move much further in that direction.”

Read: Noonan confirms Budget 2014 to be brought forward to October

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Comments (91 Comments)

  • We should be pushing for massive cuts in their expenses and allowances. they are obscene. They are allowed €750 to change their mobile phone every 18 months??? You get a free ( or practically free ) upgrade every 12-18 months anyway so where is that €750 going? It’s all these little perks that need to be stamped out.

    Reply
  • sid 07/03/13 #

    Only problem Noonan is we have no tree either

    Reply
  • Ma? Ma? Is that you inside Noonan? It must be. You’re the only one I ever heard use that phrase. Ma? Ma!!!! MA!!!!!!

    Reply
  • It’s funny that!! He thinks the tax payer has money trees growing out back for some reason!!

    Reply
  • What about the oil and gas potential
    In the Atlantic? Oh I forgot we gave that away for buttons

    Reply
  • Wally 07/03/13 #

    I’ve just checked my back garden again. I’m afraid he is dead right. If only Noonan eh!

    Reply
  • Jimbohs 07/03/13 #

    If our government stopped the ludicrous squandering of money on things that are not needed we’d be in far better shape. I know of one area of one of the Dublin city councils that in the last year alone received in excess of €1m worth of equipment that was not needed but they were told they must take it. Roll this out across the country, and it all starts to add up. The man, the government are simply spinning yarns, as per usual.

    Reply
  • Well there goes his plan B!

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  • Well Noonan, you seem to think there is a money tree called the Taxpayer!

    Reply
  • Richard Boyd Barratt says there are 6 trillion barrels of oil right under our feet.
    Why don’t we just sink a pipe down and sell off 1 trillion and we’ll be grand.

    It must be true, he’d hardly raise it in the Dail if it was total waffle would he?

    Reply
    • Indeed, Richard Boyd Barrett the well known petroleum geologist and complete non-waffler.

      Reply
    • There is enough out there to clear our debt and sort out our mess of a country. Problem is we don’t have the infrastructure to dig for it etc, that should have been done when FF were busy in Galway tents, I apologise for ever voting for them. But it doesn’t mean we have to give it all away for nothing and our forests or our fishing. The EU has made 220 billion from OUR fishing water and our own fishermen have suffered. We have given a lot more to the EU. Can we just do one thing right and change the rates so that we get SOMETHING for the oil that is off the land where we were all born. Why does enda decide, it is belong to us all.

      Wake up people.
      Take a look at a few videos:
      Australia politician talking about NWO hope that isn’t true.
      Check out this video on YouTube:

      http://youtu.be/-R9iua5ocQM

      Reply
  • Even the real trees have been sold,

    Reply
  • tim 07/03/13 #

    The money tree is the tax payer you Dummkopf!

    Reply
    • howya 07/03/13 #

      And that’s why he is saying “no more taxes” – taxpayers have been tapped out.

      I interpret Noonan’s comments to mean further expenditure cuts to balance the books. And if Noonan would focus on cutting wasteful bureaucracy and not front line staff, then we just might see a bit of recovery

      Reply
    • The huge profits made by multi nationals could go a long way as in bridging the deficit. However it seems that most of the population have been brainwashed in regards to corporation tax. Someone needs to sit down and actually calculate the real costs of foreign companies operating here. How much money is it costing in bribes to bring them here, and how much corporation tax (if any) are they actually paying?

      Reply
    • Of course Rodrigo…lets get rid of all those multi nationals. We dont need their thousands of direct jobs and thousands more in the supply chain. Really? Do you seriously think that if we come down heavy on multinationals that they will hang around? Have you noticed that the rest of the EU want us to jack up our corporation tax rates. Have you ever wondered why Rod?

      Reply
    • Let JournalWhingeBingo commence!

      Reply
    • tom 07/03/13 #

      Close the loop holes where they pay no tax and collect the generous low corporation tax in full.

      Reply
    • It’s not the low corporate tax rate they are here for, it’s the loopholes.. I (like eveyone else) cannot predict how many companies would jump ship were the loopholes be closed (or corporation tax increased), but you would have to be pretty confident of retaining the majority or it could backfire in terms of job losses & the related spend/welfare Payments etc.

      Reply
    • Lamb 07/03/13 #

      As well as getting proper procurement…e.g. drugs expenditure in health etc etc. And kit and so on. People doing deals where the government pays the bills totally milk the sytem and bleed the taxpayer dry. I’d say if you took a bunch of retail buyers and and few IT heads and put them into the civil service they’d run riot and save state coffers a small fortune. How do you think that Tesco or Aldi can offer such good value for money? Its their process for buying.

      Reply
    • Derek 07/03/13 #

      The double Irish Dutch sandwich loop hole should definitely be closed, we still offer 12.5% tax rates which is a whole lot better than other EU counties. If the big multi nationals would pay even 10% we would see a significant rise in revenue, but this and the last government don’t want to face the tax of fixing it and prefer to continue to bleed the struggling public for every last cent they take home.
      Closing that loophole wont see an exodus of multi nationals as they are too well aware that they still fair better operating here than where they will have no way around a 18-20% tax. Right now they are just creaming it at the expense of the public.

      Reply
    • Scarr 07/03/13 #

      Retail buyers and a few IT heads? Jesus wept. It’s a tad more complex than that. The costs associated with implementing a sufficient IT system based on where we are now and putting in people in the right areas, as well as training older staff members in e-procurement is a costly affair. Trust me.

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    • @dereck I assume your inside knowledge of the contingency plans of multi-nationals based in Ireland is due to your direct discussions with their Exec boards? Or rather, and i am just taking a wild guess here, is it based on your opinion, which happens to fit your argument?

      Reply
    • “there is no hidden source of funds that the government can tap”?
      “no money tree out in the back garden” and “no magic beans” that the government could tap”?
      “I’m really saying is that there isn’t any unidentified source that will yield an awful lot of tax in our country”?
      “It’s not there, there isn’t this hidden source of tax.”?

      Lose the pseudo chip on your shoulder Noonan you over the hill Sleeveen!!!!
      I know that you don’t want to rock your imminent fat pension boat.
      But maybe it’s time that you asked the Norwegians for some advice?
      Or are you just another also-ran Stoogeen Europuppet??
      Another Irish Village Idiot Gombeen “politician”??
      Another Ray Burke??
      The Laughingstock of Europe??

      http://www.youtube.com/watch?feature=player_embedded&v=76VOnzXQMsU

      Reply
    • Does this man not realise that this applies to EVERYONE’S back garden?

      Reply
    • @Sean…. paying the proper rate of tax is hardly coming down hard. But our spineless shower in the dail would’nt dream of making them pay what we’re entitled to charge them.

      Reply
  • No money tree in my back garden either, Mr. Noonan!

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  • Mr. Noonan should have checked with the ECB, the IMF and his Bilderberg buddies. They managed to find a great Money Tree that pays off unsecured creditors of businesses it doesn’t even own with a kind of masochistic glee that outsiders regard as somewhere between the comical and the obscene. This bountiful Money Tree is of course Ireland, and its fruit is the taxpayers and citizens of the State.
    The comments of Noonan today, and from Kenny and Gilmore during the week are a reflection of the detatchment they, and their comrades in the cabinet, have from the reality of life in Ireland for citizens in general. The usual result of such political detatchment is electoral meltdown. This point is much closer than Kenny, Gilmore or any of them will say, but they all know it is imminent.

    Reply
    • Good points
      The ECB do have a money tree, they were able to magic over a trillion dollars in cheap credit in tha last few years. Funny that, they say our 30 billion if not paid back would devalue the euro yet theres won’t

      Reply
  • Theres no feckin money tree in my back garden either Michael

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  • There WAS a money tree. Politicians and Economists and pub talk fed it crap for years so it produced lots of money. The politicians bought your votes with this money but no-one re-planted any to make more money trees. The money tree died of obesity was cut down. Now the stump is worshipped as a ‘class two relic’ because you can see the imprint of Bertie Aherns’ arse in it.

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  • What a condescending horses arse you are noonan.boohoo with the tax rates,civil servants pay 7 percentage points higher than the standard taxpayer already.your outrageous unjustifiable and mainly unvouched expenses being cut would give the poorer people of this country a little bit of medical care and food etc.hypocrite

    Reply
  • sean 07/03/13 #

    Theres no money tree , the truest words you have said noonan in you whol politcal career

    The people are indeed broke .
    .
    .
    .
    .
    .
    Actually the only money tree in this country is within the ground of leinster house

    Reply
  • He is absolutely right; there is no money tree in the back garden. What do you do so? Climb over the feckin wall Michael and look there! Simulate the Irish economy by announcing more road construction contracts and by instructing banks to extend reasonable credit or risk de-regulation. A man with 20 percent deposit for a house and in current employment should be extended mortgage facilities to three times his annual salary. If a bank denies it, they should be withdrawn their bail-out support quota. A man or woman in current employment should be extended credit facilties to purchase a car up to one year’s salary. If the bank denies them, same rule as before. Stimulate, Mr Noonan, not cripple.

    Reply
  • Unfortunately there’s no brain bush in Noonan’s garden either!

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  • Why not just cut the foreign aid that we feel obligated to give and either use it as income or invest in the country. That way the government could atleast give us a few bob in our pocket to spend and boost the economy . I think the figure is something in around €640million according to online information

    Reply
  • Common sense. If Sinn Fein took power entrepreneur’s would only be found in Irish museums…

    Reply
  • tax yourself and the rest of your cronies first

    Reply
  • He seem,s very able at getting money ,taking money off people and saying it is not tax is silly
    It,s money gone call it what you like .

    Reply
  • There is a money tree, its called the Public Service….you keep picking at them……

    Reply
  • Tús Nua 07/03/13 #

    The corporations everybody says we cant touch dont even pay the full 12.5% so how about we make them pay more and then cap the wages for the top earners and then nationalise the natural resources we have and then we can have money to invest in infrastructure

    Reply
  • Mick B 07/03/13 #

    There is an untapped tax source – legalize, regulate and tax cannabis growth/consumption. That seems to be booming in Ireland and regardless of it’s legal status, people will keep using it at the levels they do. Funds would be freed up as we won’t have to keep the offenders in prison – they would instead be contributing to the economy by paying tax on the weed they grow and employing people, who would also pay tax. It is time to start thinking outside the box for a change.

    Reply
    • We could also utilise the many other benefits of the plant.
      Wood, paper, concrete, insulation material, biodegradable plastics, biofuels, food, fabrics, and goodness knows what else, anything that isn’t made of glass or metal apparently.
      It’s a fast growing crop too, we could leave some our forests to grow properly again.

      Then there’s the medicinal uses, the tourism we could generate if we had Amsterdam style coffee shops (goodness knows we have enough coffee shops as it is), the slogan could even play up our “Green Isle” image.

      We could lead the way in a “Green” economy. Give it a few years to become more commonly decriminalised and we could have a booming export industry too.

      Reply
  • Is it true that if they have a second home the taxpayer is paying most of of mortgage on it? If so, it’s absolutely outrageous. We need a brand new style of governing in this country. No more cute hoors looking after themselves and their family/friends.

    Reply
  • “No unidentified source that the government can tap into”,,,,,,drugs and prostitution maybe, they are goin to be there regardless of wether the government chooses to tap into them or not, time to wise up and call a spade a spade.

    Reply
  • Peter Mc 07/03/13 #

    So Minister this European Comission research that you mention supports your taxation system. They’re not connected to the people who are telling you how run our country and the people you and Enda want to keep happy. They must be a completely independent Comission just conducting this research for the greater good.

    Reply
  • Noonan should focus on:

    cutting our spending, reduce tax breaks on the top 10 per cent, close tax anomalies and loopholes, and introduce a wealth tax.

    Reply
  • What about the Financial Transaction Tax which 11 other EU states have signed up to??? It has extra-terroritoral effect so Irish based firms will pay it anyway but Ireland wont get the revenue.

    Reply
  • mr noonan and the rest of the FAT CATS are keeping the”money trees for themselves” and skinny enda

    Reply
  • Did he really go on to explain what he meant by no money tree or magic beans? Was it in a briefing document from his dept?

    Reply
  • Funny isn’t it. Dodgy Dave Cameron is also talking about magic money trees today.

    Reply
  • There’s no money tree in my back garden either!!!!!

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  • He really is a horrible man.

    Reply
  • That’s what I’ve been telling my daughter all along… ‘There is no money tree in our backyard’. lol

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  • what is a progressive tax system. is it one where the taxpayer becomes progressively poorer because that is what is progressively happening to me at the moment. perhaps it is one where the government progressively takes more of you income. the so called deficit has been caused by successive finance ministers handing over money from the exchequer give to private banks. not alone that but they (the government) continue to borrow money to hand over to private banks. this is putting the country into further debt. how is a country supposed to reduce its debts when it continues to borrow money to hand over to delinquent bankrupt banks

    Reply
  • There is a magic money tree in the back yard, it’s called the public….

    Reply

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