Budget 2014 – Some Ideas

Budget 2014 is only a month away (It will be announced on October 15th) – and it looks like it will be another bad one for many people in Ireland . This week Minister Noonan said it will be another “ tough budget“.  He also said that ” we’re coming towards the end, and we want to keep with it now. Because we’re like a hurling team five points ahead going into the last quarter. We need to close out the game – now’s no time for slacking.

We expect there will be more cuts to welfare spending and more increases to taxation . The changes might not be simple cuts or increases to rates – they will probably be changes to eligibility , rules and timescales . It is also difficult to see pensions not being touched in this Budget (they have not been cut at all in recent budgets).

While we can all try and guess at what shape the Budget 2014  will take – maybe the government will take note of some of the Budget submissions.
Every year various organisations make submissions to the government telling them what they think should happen in the Budget.

Here is a round up of some of the proposals contained in a few of the Budget 2014 submissions.

Citizens Information Board:  · 
Changes to Family Income Supplement – including lowering of the   income threshold and allowing payment to workers doing less than 19 hours a week.

Extension of the Back to School Allowance to earning families whose income is below or equivalent to a social welfare payment for their family size.

Social Justice Ireland are recommending a   minimum effective corporation tax rate of 6% (i.e. no corporation would pay less than 6% of their profits in corporation tax). The also want a Financial Transactions Tax of 0.01% , a universal state pension.
SJI are also asking for an increase of €5 a week in the PAYE tax credit and in the basic social welfare rates.

TASC – Their list includes the following :
Lower  tax relief for landlords;
The introduction of a small wealth tax,
Higher Capital Acquisitions Tax (CAT);

Reducing tax relief on private pension contributions  to the standard rate for everyone.

Introduce a 3rd band of employer’s PRSI contributions at 17% charged on the portion of salaries above €100,000.

More taxes on gambling, tobacco, alcohol, and carbon emissions.

Irish Congress of Trade Unions :
Suggestions include – Reductions in the level of tax reliefs for those in the top income decile ;
A gradual withdrawal of tax credits above a threshold of  €109,000 per annum.
Introduction of  a  wealth tax