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Dublin: 11 °C Sunday 26 May, 2013

Super-levy needed for high pensions, says Labour Party Chairman

All pensions over €100,000 a year should be subject to a levy of 10 per cent, rising to 25 per cent on pensions over €500,000, says Colm Keaveney TD.

 Labour TD for Galway East, Colm Keaveney.
Labour TD for Galway East, Colm Keaveney.
Image: Leon Farrell/Photocall Ireland.

THE LABOUR PARTY’S Chairman Colm Keaveney TD has called for a super-levy on all pensions above €100,000 in order to maintain social solidarity.

Responding to a private members motion concerning the large pensions being paid to senior public servants, Deputy Keaveney said that all pensions over €100,000 a year, including in the private sector, should be subject to a levy of 10 per cent, rising to 25 per cent on pensions over €500,000.

“I would be very interested in looking at a solidarity levee so that middle Ireland gets a demonstration and are satisfied that” the pain is being shared” Deputy Keaveney told TheJournal.ie.

We need to tax it, levy it, take it back. There is a very strong sense that those people who are by and large responsible for creating the crisis will be relatively cushioned from the effects of the budget. Those in the middle who are paying for it want to see social justice.

In an angry exchange in the Dail chamber last night, Deputy Keaveney criticised Mattie McGrath for signing the motion on public sector pensions when he “tickled Bertie Ahern’s belly for 15 years.”

Asked whether banker bashing was being used to deflect attention away from the large guaranteed pensions received by government ministers, Deputy Keaveney said the current government had come down hard on favourable perks from day one.

“”We took a pay cut and we got rid of the mercs. We have tackled high pay in the semi-states had a referendum on high pay in the judiciary. If a levy means that Bertie Ahern has to pay 20 per cent extra on top of his pension lets go for it.”

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Comments (58 Comments)

  • Yes yes and yes. Don’t have meetings about taking about debating and considering the idea. Just do it already.

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  • Anybody with a pension of €100K after four years in office could be deemed guilty of rifling the coffers.

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  • Good proposal. I would go a little further. Government should either legislate or have a referendum to approve reduction in all state or semi state salaries over E200,000 PA and pensions over E100,000 PA introduce a higher tax rate for salaries over E200,000 and pension over E100,000 paid by state or semi state companies which includes bankers.

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  • Is there any data available as to how many pensions are over €100k and €500k per year. I expect a super tax as described in the article will ensure these pensioners retire to warmer climates at least for 180 days per year…

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  • Ah yes another populist suggestion from Lab in the run up to the budget.Still no mention i see of the levels of pensions for politicans past,present and future i see.

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  • Scarr 07/11/12 #

    Im not sure how I feel about this suggestion. It’s certainly populace. Maybe pension taxes could be raised generally speaking, but if someone has educated themselves, got a good job or created a successful company they should reap the rewards. However if someone has ran a bank to such a state that it has to get bailed out then levy the hell out of their pension.

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  • The tax on pensions should be based upon the market value of the pension at time of initial drawdown. This would be better than taxing the income sourced from the pension’s value as:

    1. Politician’s draw their pension when they retire from politics. Sometimes this is well before the rest of us mere mortals do at age 65. This is extremely valuable and should be taxed (if not simply abolished).

    2. It ensures that all super-wealthy pensioners pay the tax as you cannot evade the tax by living elsewhere

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  • Man Cullie. Good idea, would love to see that happen. Would love to see Labour run with that. Has Enda and Eamon the balls though.

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  • Populist shite by Keaveney all talk and no action.

    He earns a basic salary of €92,672 a year plus expenses and allowances. Why doesn’t he start with his and his own colleagues earnings if he wants to show the public “that the pain is been shared”.

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    • Kerry, I’m scared. I agree with you.

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    • So am I Vincent. Very scared!!

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    • Kerry – I have to add something to your complaint on the salary Keavney earns. His salary is not excessive by mid to top executive/skill level (depending on industry). I’m unsure how much they really net on perks and allowances as you mention so ill just focus on salary.

      I dont earn anywhere near that figure, but I know a good number who earn similar figures and they work their arses off – work weekends, 16 hour days regularly and a lot of travel (and no flexitime or time off in lieu!).

      Now I accept that most people in ordinary jobs cant fathom why someone “deserves” to earn those types of figures. But they have to ask themselves would they really sacrifice so much of their personal, family and recreation time to earn big figures. And secondly, have they the ability to earn those figures? If they do, why are they still doing what they do?

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    • Mac here are the details of the perks and allowances for a TD.

      Travel & accommodation allowance €12,000 (Dublin environs) to €35,000. Unvouched I believe.
      Allowance for renting office €15,000 (unvouched) to €25,700 vouched
      Secretarial assistant plus additional secretarial allowance €41,092 vouched or €8,88.17 unvouched plus an annual allowance of €11,591 vouched
      Leinster Hse provides free telephone and postal facilities plus 1,250 pre-paid envelopes an month
      €750 every 18 months to buy a mobile phone and car kit. This also includes insurance and installation costs
      €8000 one off grant to set up an office outside Leinster Hse

      Not a bad list of allowances and perks I think you will agree. I know a good few people who earn less then the basic salary of a TD and “enjoy” the same t & c you describe with the added pleasure of doing 7×24 on call.

      Irish TD’s earn circa €20k more then our neighbours in the UK. They earn to much full stop,

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  • Taxes on high pensions / wealthy are currently at a 20 year low. Since the 1980’s, taxes on the rich have been falling

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  • Does anybody reading the article really believe that our government is going to tax pensions ? The retired civil servants who placed their successors in place or the politicians are not going to cut their own families and friends. NEVER.
    People are hungry in Ireland and these elite will not change
    I suggest any pension over €100,000 be taxed at 40% and every 100 K above that an additional 5% up to a cap of 70%.
    If the economy improves it could be revise.

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  • talk is cheap as you and your fellow labour TDs will find out when you lot are buried in the next election,,R.I.P

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  • 10 and 25% seem very low at those levels. Any public pension (nationalised bank etc..) should be levied at >50% above 100K, at a minimum.

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  • Emmet 07/11/12 #

    Why is Peter Mathews constantly side lined by FG, he speaks a lot of sense and in my opinion should be at the very least the junior minister for finance…. Best people don’t seem to get the correct positions

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  • Common or garden Labour minister says….”Quick, a token gesture to show that we care…before the shafting begins again.”
    And they expect us to buy this steaming pile of s**** yet again.
    For how much longer must this go go, not much I feel

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  • No….not Super-Levy.
    ABOLISHMENT . …Now

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  • In the cases of bodies that are owned by the government, absolutely.

    Apart from that, absolutely not. The top 1% of earners (average salary of €403,000) pay 18% of the tax intake every year, the top 20% (average €100,000) pay 71%. Taking 10-25% of their pension after having paid 71% of the tax throughout the most successful years of working life seems excessive.

    “Is there any data available as to how many pensions are over €100k and €500k per year.”
    The top 1% earners of the country have an average salary of €403,000 and that amounts to 21,650 people, so you’re looking at somewhere in that figure I would imagine.

    “Social solidarity” sounds very iffy and such a measure will only serve to further drive the already widening gaps in Irish society.

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    • Class warfare by right-wingers creates widening gaps in Irish society. According to the OECD, we have the lowest pensions tax in western Europe. We also have the lowest income taxes in western Europe for high earners.

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    • Do you mean like the gap between rich and poor that is on the increase in the last few years? That gap?

      They pay 18% of the taxes: what proportion of the national wealth do they control?

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    • I mean this as a genuine question, not as a dig. Can someone explain why there is a seemingly constant call for public and private sector to be in some way equalised on many issues but then not on something like pensions?

      Personally, I think that pensions are something that should reflect the wage people have been on and therefore when wages are fair pensions are fair. I don’t think a pension should be about your industry but your job and it’s wage (and of course contributions). Maybe I’m missing something there though – I’ll admit to not having a lot of knowledge in the area.

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    • This is not about top earners it’s about massive pensions given to civil servants, government minsters and bankers.
      The Irish people should not have to pay for these, sorry but these people got us into this mess and expect Hugh payouts from the irish people.
      they should be in prision for neglect at the very least.

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    • Chris – It’s about all people on pensions above the proposed numbers. Perhaps those you have listed are the people most likely to be affected by the proposal but that doesn’t mean that it’s limited to those groups.

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  • Colm Keaveney- under a strange, persistent misapprehension that he is Taoiseach. Once again.

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  • Where’s my comment gone?

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  • Labour wants ‘social solidarity’?

    If so they should start by immediately renegotiating the Croke Park agreement, if their union buddies don’t like it then let them strike, they’ll soon learn how little support they have in the real world outside planet Gilmore

    Reply

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