Budget 2011 – Fine Gael Alternative

With Budget 2011 due in 4 days time – Fine Gael today released their ideas for the Budget and the 4 Year Plan.
Some of the main points are :

No income tax increases in 2011 before recovery takes hold, and limiting income tax increases to half the levels proposed by Fianna Fáil over the entire four years;

A much greater emphasis on closing tax loopholes for the rich, including suspending property-based tax reliefs and tightening the rules for tax exiles;

Targeting the €3 billion worth of annual social welfare fraud through the establishment of a single Payments and Entitlements system.

Increase the second home tax  (NPPR)
Cut Capital Acquisitions Tax thresholds
Cut  stamp duty for families trading up and down

No cut to Minimum Wage

No change in either the standard or top rates of income tax, or the 12.5% rate of corporation tax;

Abolish the travel tax subject to deals on re-opening routes with Ryanair and Aer Lingus;

Abolish the lower 8.5% rate of employers’ PRSI on staff earning below €356 per week for at least three years to reduce employment costs;

Cut by 1.5% the lower 13.5% VAT rate

Increase DIRT to 30%

Cut the number of national politicians by 35%;

Cut the threshold for application of minimum 30% effective tax rate to €250,000 from €400,000 at present (with marginal relief from €125,000);

Reduce the size of the public sector by 10% – just over 30,000;

Reduce the size of the core civil service working in Government Departments by a third