How Its Done

Ireland's economic crisis is almost identical to the US: 

• A sub-prime nightmare
  
• Banks not lending, EURBOR (the Euro LIBOR) misbehaving
  
• "Recession" declared
  
• Stock market crashing
• Gov't freakin' out!
  

Yesterday the solution was announced. I'm going to show it to you in a minute. People here are upset. They're grumbling. It appears unlike the US solution--throwing $700 billion that we don't actually have at the banks--the Irish government is really finding a way to pay for mistakes. 

Now. I'm about to show you a whole lot of tax increses. Because taxes provide the money that the Irish government has promised to spend to bolster the economy. Bush has not proposed tax increases. McCain, believe it or not, is proposing magical tax CUTS--in other words, taking money OUT of our already bankrupt system! I wonder, how? Will this man end us in a giant economic crisis and even greater recession, just like Bush has? Increase spending and decrease taxes---has that worked the last 8 years?

Okay, you're ready to see the Irish economic plan now:

Irish Budget 2009

Introduction of income levy of 1% on income up to €100,100, and 2% on balance

-Translation: New 1% income tax, in addition to current income tax of 21-40%

Levy of €200 on car parking facilities provided to employees in main urban centres

-Translation: €200 tax on employee car spaces

Increase in standard rate of VAT from 21% to 21.5%

-Translation: Sales tax goes up .5%

Increase in excise of 8 cent per litre of petrol, 50 cent per packet of twenty cigarettes, and 50 cent on a standard bottle of wine

-Translation: Tax on Gas, Cigs and Wine goes up. By a lot.

Increase in betting duty from 1% to 2%

-Translation: Tax on gambling goes up.

Acceleration of preliminary tax payment dates for large companies

-Translation: Tax due date for corporations is pushed earlier.

Increase in rate of DIRT to 23% and increase in retention tax rate to 26% for certain other savings products

-Translation: Tax on savings accounts goes up (yes, they tax your savings accounts here).

Reduction in pension contribution limits from €275,239 to €150,000

-Translation: Contribution limit to retirement accounts significantly reduced.

Increase in motor tax rates based on engine capacity and carbon bands

-Translation: Car tax and emissions tax increase.

Introduction of a levy of €200 per dwelling on non-principal private residences

-Translation: TAX ON THAT SUBPRIME HOUSE OF YOUR DREAMS!

Some modest taxpayer treats:

• Increase in standard rate bands €1,000 single and €2,000 married
  
• Increase in mortgage interest relief for first-time buyers and reduction in relief for non first-time buyers
  
• Relief for medical expenses other than nursing home costs reduced to the standard (20%) income tax rate
  
• Increase in Employee PRSI ceiling from €50,700 to €52,000
  
• Enhancement of benefit of tax credit for R&D from 20% to 25%
  
• Introduction of three year tax exemption for start-up companies where annual liability is less than €40,000
  
• Reduction in top rate of stamp duty on commercial property from 9% to 6%
  
• Increase in the rate of CGT from 20% to 22%
  
• Changes to CGT payment dates
  

Like I said, taxpayers are furious, and I have to admit, as a foriegner who is fully taxed, I'm miffed that I have to pay more to compensate for Irish banks and Irish homebuyers. Likewise, I'm paying on savings and assets in the States right now too! But oh well! This is how nations work! I figure if you don't like taxes and don't like helping bail out other people and other companies, go live on an island or join a commune. No, wait, communes help each other too. Yep, just go live on an island. McCain, your tax CUT plan is ridiculous. Taxes are what the US needs. Ireland remembers hard times. For the Irish, they wern't that long ago. People were splitting pennies and sharing shirts within the last 30 years. They remember true and unending recession and they don't wish to see it back, so they've taken real action against it. 

It's time we got scared too. Like the good Catholic nation I live in, it's time the US started repenting for our sins and ponied up to the charity plate.