Taxation on Savings

I just heard on newstalk that Michael Noonan said that they are going to introduce taxation on savings. Did a quick google on it and there’s no coverage of what he said…

Can anyone shed any light on the situation?

Damn horders! We’d be fine if they didn’t insist on hoarding their money in that selfish manner!

If this was the case it would be a stupid, stupid move increasing the flight of deposits from this country. I’d imagine it would have a zero affect at best with large depositors moving to UK/Europe and the small depositors paying for that. This in turn would decrease the reserve capital of the banks.

It will not encourage consumer spending or investment.

If they are looking at these figures published today by the CSO, they may be trying to scare people to spend rather then save! - rte.ie/news/2011/0714/saving-business.html

Maybe people are saving the same amount but disposable income is down.

I spend like a lunatic, quite frankly, the retail sector would miss me if I left. Taxing my hard earned savings before I can spend them on a house might be the straw that finally drives me to Kiwiland (their retail sector is appalling though, it puts me off)

Pretty hard to tax debt repayments (which are included in the savings rate). Cash deposits are falling. Taxing cash deposits further will make it more worthwhile to pay off debt. This will lead to a rise in the savings rate, not a fall.

how do i set up an Ansbacher account?

Sorry isnt DIRT already a tax on savings? Are they going to tax the capital as well as the interest? That is blind fucking robbery.

That sound you hear is the sonic boom as the cash leaves the country.

I would have thought that most of it would have gone already.

There is still some €120bn left in private deposits in Ireland according to the ICB.

Does anyone have a link to the story or the time when the interview was broadcast?

I can’t find anything about this story at the moment.

It all feels very ephemeral.

Problem solved .

25 billion each to AIB and BOI .

30 billion for Anglo ( Anglo always costs more )

20 billion to be held back for bondholders who may have misplaced their bonds or have forgotton the maturity date and may turn up looking for their cash at some random time in the future .

5 billion for NAMA ( just in case )

5 billion for a stimulus package , car scrappage , IPads , trips to NY etc

10 billion left in the deposit accounts .

Yep. Has somebody explained this to Noonan? It’s pretty damn clear the media don’t get it.

No. I did a search when this thread started and I’m fairly sure it’s a bit of confusion caused by Michael Noonan using ‘savings’ and ‘taxation’ in the same sentence.

As someone who has worked hard during the good times, didnt get caught up in the boom and put a few quid away to see the family through a rainy day this would be the last straw. Up to now I have listened to a lot of the debate on what I have considered to be over-reaction to the threat to savings deposits and left my few quid with AIB. Either through laziness or through not seeing any immediate urgency I have left things stand. If what the OP has reported is correct then my stash will be gone out of the country and I would suggest that this will be the straw that breaks the camel’s back for anyone out there with savings.

Where do you see that?

The housholds number in the quarterly bulletin (only up to january) has the number at 93.5 bn down from 99 bn in january 2010. centralbank.ie/publications/ … n%20Q2.pdf (Table A.1)

From table B2, household deposits amounted to about 109 bn euro in mid-2007 - centralbank.ie/publications/ … pendix.pdf

I was referring to private sector deposits and not just household deposits but even then I am stll wrong (120bn was stuck in my mind for some reason). I agree your number on household despoits but from the May CB bulletin from the CB of Ireland I see €172.5bn in private sector deposits. Presumably a bunch of that is IFSC related and does not represent genuine domestic savings (whether household or corporate).

There’s also a big chunk of interbank deposits included in private sector deposits which, IIRC, includes collateral posted on derivative contracts.

As far as I can see this was on the first part of the Moncrieff show in an interview with Ross Whittaker, Film Ireland.

It’s Ross who says Michael Noonan was on about a tax on savings, as part of a genial wide-ranging discussion on film, the arts scene, Ireland, the economy, etc.

I don’t think he has his context/phraseology in order.

Might be jumping the gun here.