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Ireland Proposes To Tax Pensions
Ireland just floated another proposal that is sure to be another big hit with the general population:
The various tax reduction and additional expenditure measures which I am announcing today will be funded by way of a temporary levy on funded pension schemes and personal pension plans. I propose that the levy will apply at a rate of 0.6% to the capital value of assets under management in pension funds established in the State.
It will apply for a period of 4 years commencing this year and is intended to raise about €470 million in each of those years. The levy will not apply to pension funds established here and providing services and benefits solely to non-resident employers and members. Further details regarding the proposed application of the levy are set out in the Summary of Initiative Measures.
I am conscious of the concerns of the pensions industry about the impact of a levy in circumstances where the pensions sector, in common with other sectors in our economy and society, is finding the current economic and financial environment very challenging. However, the imposition of the levy is for a relatively short period and its purpose is to improve that environment by providing the means to encourage job creation in areas of our economy most likely to deliver that employment quickly.
The levy is being confined to pension funds because I believe that the alternatives for increases in taxation elsewhere at this time would be more damaging to the economy. I will be glad to consult with the pensions industry on the legislative provisions which will give effect to the levy so as to seek to minimise, where possible, any unnecessary difficulties which this measure may give rise to.
The pension levy represents a very significant contribution by the pensions industry and the many individual savers it represents to our commitment to getting the economy moving again. I am aware that the pensions sector is also concerned, given the temporary levy, about the commitment in our agreement with the EU/IMF to reduce the tax relief on pension contributions starting next year. I will examine this issue in the context of the results of the Comprehensive Review of Expenditure currently being undertaken by the Minister for Public Expenditure and Reform, and any resulting scope for fiscally neutral changes to the EU/IMF agreement.
While the debate of how much €470 million a year will bring to the economy at the expense of pensioners, as well as just how "relatively short term" this development will be is one thing, this latest scramble to raise funding (in lieu of Ireland's stubborn refusal to hike corporate tax rates... for now), is likely a precursor to what may and likely will happen to other "austere regimes" both in Europe, and soon in the US. We can just see it: soon enough pension funds will become demonized as being the sole beneficiaries of monetary largesse, and as a result will be forced to do their Robin Hood duty of funding various federal, state and local government empty coffers in a comparable taxation method. Ultimately, it presents the Chairman with yet one more reason to inflate risk assets as high as possible, before this "capital raising" process becomes a reality not only in Dublin, but in D.C. as well.
As for the alternative, the proposal of a financial transaction tax.... crickets.
h/t John
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The IRS and most States tax pensions. Its abhorant, but they do it. And not for the short term. In perpetuity.
Here in Brasil we have something called IPVA, Tax for Ownership of Motored Vehicles.
"P" is for Ownership (Propriedade). Well... the original meaning of the P was "Temporary" (Provisorio, in Portuguese).
The temporary tax would be used to fix our horrible, decrepit roads.
Guess what happened. None of the money was spent for the roads, and the Temporary became Permanent.
The same thing happened here several times with other temporary taxes.
There is no free lunch in this world.
Right now, the world is swimming in debt from decades of malinvestment and welfare state spending.
Newly created debt has been added to exisiting debt in order to avoid a systematic breakdown of the worlds fiat monetary system.
It is this system which has been fully exploited by the elite--and they will do whatever it takes to maintain it.
Economic loses have not been realized, but merely shifted to the taxpaying global populace.
Keeping those losses on the taxpayer balance sheet is driving all current policy decisions.
Knowing this will help you anticipate future policy actions and also allow you to prepare for the inevitable collapse of the entire fucking system.
The global insolvency crisis has reached a new stage, one where government openly advocate for policies that involve stealing the retirement money of its citizens.
the world is swimming in debt ... someone, though, owns the pool.
Its time for some boondock saints action on the banksters.
+1 to idiot
taxing endangered species
+1 to idiot
taxing endangered species
oh zh - this is probably the fifth or sixth time theyve levied the many state pensions...this is not new news..pls stop treating every news story as if its going to change much or send silver to $200 or whatever it is evry post here wants it to..
Yes, tax The People's pensions to Bailout the banks...LMAO!
Why not just "borrow" it?........he he he
Starve an old Irish lady so that a banker may live.
Taxes for the little people. Bonuses for the rich.
Hummmm. You don't even have to go further in history than the 20th Century to understand how this often plays out. I guess it's good that the average "little person" has a timeline that doesn't extend further than their own birth. Truly the legacy of a public school education (or no education at all). Keep the blinders on folks, nothing to see here...move along!