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Irish Government Raids Private Pensions

From the Business Insider:

Irish Bombshell: Government Raids PRIVATE Pensions To Pay For Spending

Joe Weisenthal and Gregory White | May 10, 2011

The Irish government plans to institute a tax on private pensions to drive jobs growth, according to its jobs program strategy, delivered today.

Without the ability sell debt due to soaring interest rates, and with severe spending rules in place due to its EU-IMF bailout, Ireland has few ways of spending to stimulate the economy. Today’s jobs program includes specific tax increases, including the tax on pensions, aimed at keeping government jobs spending from adding to the national debt.

They think increased spending and increased taxes will stimulate the economy? No wonder they are having so much economic trouble.

The tax on private pensions will be 0.6%, and last for four years, according to the report.

From the jobs initiative release:

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.

And, of course, it will only be temporary. Just like the US income tax.

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.

Ireland’s ability to levy further taxes on other parts of the economy is restricted because its economic growth has been inhibited in the wake of a financial crisis that crippled its banking sector and decimated its public finances.

Unwilling to budge on the country’s low corporate tax rate, Enda Kenny’s Irish government has chosen to target pensioners for funds to grow the economy. Whether it turns out to be an example to other countries seeking alternative ways to raise revenues with aging populations is yet unknown.

Again, how will raising any taxes grow the economy?

Still, remember how the economic gurus, beltway pundits and the rest of media masters laughed when some said governments might start raiding people’s private pension funds?

Well, it’s happening, isn’t it? Are they still laughing?

This article was posted by Steve on Wednesday, May 11th, 2011. Comments are currently closed.

6 Responses to “Irish Government Raids Private Pensions”

  1. GetBackJack says:

    This is surely a US Congress approved dry run. Test market it in Poughleepsie and see if it plays, and then bring it home to Broadway.

  2. Liberals Demise says:

    Jesus, Mary and Joseph!!
    Did Chris Dodd kool aid the water supply over there?
    Stupid is as stupid does!

  3. untrainable says:

    Makes you appreciate the international bank of posturpedic.

  4. Freedom615 says:

    “Still, remember how the economic gurus, beltway pundits and the rest of media masters laughed when some said governments might start raiding people’s private pension funds?

    Well, it’s happening, isn’t it? Are they still laughing?”

    Well, they may be still chuckling, albeit nervously. But still, it’s not like it will EVER happen here, right? Right?

  5. proreason says:

    I wonder if there really are economists (or anyone else) who think that growing government and accumulating debt is good for an economy. I guess it was an understandable position in the 1930’s when the study of economics was still fairly new, but it’s really hard to imagine that any serious person could think so today.

    I think they are all ideologues and that their ideology is marxism.

    The other possibility, which may explain Ireland better, is that politicians are so determined to maintain their positions of wealth an power that they simply don’t care that their actions destroy countries. They probably figure that they will get theirs, and to hell with anybody else.

    This Keysian hilarity of multipliers for every dollar the govenment spends wastes is the equivalent of medieval leeches. You can hope all you want, but when evidence is 100% on the side of something not working, the explanation for why people recommend it has to be something other than helping the patient.

  6. DW says:

    Last month the Irish Republican Army announced that they were resuming hostilities.
    Now the Irish government is attacking IRA’s.


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