Irish Times - Pension levy is tax deductable

did they dream this up on the back of 20 pack box of Major? :laughing:

irishtimes.com/newspaper/fro … 17549.html

It looks as if the Government have grossly overstated the benefit of the pension levy. :open_mouth:

How could they have messed up in their forecasting so badly yet again is such a basic way?

I have seen this commented on elsewhere. I don’t yet believe it.

It has always been described as a levy, not a pension contribution. I imagine some union funded lawyers will be onto it though

They’re such cute hoors. Using the Department of Finance calculator a Civil Servant on 100k will lose 5% in take home pay. The public are told the deduction is 9%.

Guile and deception. Smoke and mirrors. Con artists.

Hahahahahahahaha

Because the Dept. of Finance is full of Zanu FF hacks. I mean only 1 member of the senior staff has a qualification in economics. Just look at theirs and the CSO and CB’s financial forecasts. To say they have been inaccurate is putting it mildly to say the least.

Oh god… Only one member has a PhD!!! It didn’t say anything about qualifications!!!

ANd of course any decent economist (even a PhD) would point out that a qualification is really no more than an example of “signalling”, a response to market failure due to assymetries in information.

It predicts nothing about the underlying ability of the owner.

The government should have called it a “pension contribution” from the start and not a “levy”.

That way its made clear that its not a new tax but a contribution towards the pension they will receive later on when they retire.

Also if people think its a levy or tax then they think it can be abolished some time in the future. But this pension contribution has to be permanent.

Does the 20bn which is mentioned for PS pay include quango pay. I suspect that it doesn’t. I persume the levy will be applicable to quangos as well as the PS.

Depends what you define as a quango, some of the bodies are self funding through levies / licenses / etc. and a number of them operate their own pension schemes, etc… But shure, don’t let the facts get in the way of a good story…

Can someone give me a good example of what you guys keep terming Quangos?!? Also, newsflash, an NGO is generally nothing to do with the Public Sector!!! :nin

bodies self funding through levies / licenses / etc. :wink:

The censorship board
The film certification board
The central fisheries board
The regional fisheries board
The National Council for Special Education
The National Psychological Service
Prison Visitor Committees
FAS :nin
(From here: finegael.ie/news/index.cfm/t … nkey/35536)

As far as I am aware, none of the bodies above are self-funding. And while the agencies may be titularly non-governmental, they are set up by the government, the boards are appointed by the government and the government pays their bills. That sounds pretty feckin’ governmental to me…

Bord bia
IDA
Enterpise Ireland
Tourism Ireland

It’s a pretty long list.

Yeah, in common parlance to date those wouldn’t have been recognised as Quangos per se, usually a Quango would be 3/4 senior bods set up for a review / taskforce / etc…

I have always accepted the meaning as pretty literal:

A Quasi Autonomous Government Organistion.

Is it a government organisation? Check
Is it quasi automous (i.e. carry out government set policy but with it own governing board)? Check

It’s a Quango.

They call it quango, quango quaaaangoooo… :angry:

ETA:

The Poms are so organised. Look a handy look up:
quangos.ercouncil.org/search/

Quasi… NON… Leaves alot up to the imagination doesn’t it… 8)

the levy is one thing, the job cuts will come next. and cut they shall, and raise taxes too.

if we can’t show the international community that the state has revenue raising ability then we can’t roll over debt effectively and if we loose our rating then that will definitely happen so the deeper and harder the cuts the better it is for the country - although not the individual - hence i’m saying it now, this is merely the opening gambit.

I wonder does that include TDs.

The levy is a weird thing. It’s not a pension contribution 'cos it doesn’t go towards paying public sector pensions in the future - it goes towards paying the pensions that are currently being paid. Although this is an odd way to do things (i.e. paying pensions out of current revenue) it is actually the best way to do it if the economy is going south. Ireland really lost out by investing in the NPRF in comparison to countries which didn’t because of the crash in equities etc over the past while. So anyway, the levy is really a pay cut on gross pay of between 3% and 9.6%, not a pension contribution - same as if anyone in the private sector took a pay cut of between 3% and 9.6%. It’s odd that they’re trying to sell it as a pension contribution. Really odd.

The 20bn in public sector pay includes all public sector pay bills, as far as I know. It even includes the pensions currently being paid which, since the new levy doesn’t apply to pensioners, makes the arithmetic even more curious.

How can the government argue with the unions’ position that this is inequitable?

As tax is reclaimed at the marginal rate the higher rate tax payer benefits more (on a percentage basis than the standard rate payer.