RSS FeedBudget 2010, The Fallout
Posted by Senan
So, it's finally upon us. No more speculation, no more postulation. Brian Lenihan of FF has delivered his budget speech to The Dail, and over the coming days, weeks and months we'll all be feeling the associated pinch.
I think the spin doctors did a pretty good job in the weeks leading up to today to forewarn of the harshness that was to unfold. And so it seems to me that the impact was relatively dull. Yes there were protests, yes there are unions threatening political and civil unrest, and yes it was 99% bad news. But it's the 'ripping the plaster' effect. Quick burst of pain stuff.
It's a tough budget for sure. And to be fair to the public sector workers - who I often slate on this column - they look like shouldering a fair chunk of the pain this time around.
The opposition parties were also pretty weak; they don't seem to have a coherent alternative strategy, or willingness to be a loud voice of dissent. Perhaps they know it is necessary?
Salient Points
- €4bn target in public sector cuts successfully achieved. This will be achieved through banded wage cuts as follows: 5% on the first €30000, 7.5% on the next €40000, and 10% on the next €55000.
- VAT will revert to pre-April budget level of 21%.
- Jobseekers allowance and social welfare payments will be decreased depending on circumstances (age, dependents).
- Child benefit will be cut by €16 per month.
- Scrappage scheme announced. You'll get €1500 off VRT on a new low-emissions car...how many of us are buying those I hear you ask?!
- Good man Cowen. The Taoiseach will take a salary haircut of 20%.
- Other ministers will take a 5% cut.
- Excise duty on alcohol is going down, so we can drown our sorrows are little easier. The vintners lobby will be delighted.
- The Greens also had their say. We'll have water metering soon, and a carbon tax is to be introduced which will have an effect at the pumps.
- Those high net worth dudes who try to dodge the tax net by flying out of the country regularly will have their wings clipped. A €200000 charge will apply to them to maintain their Irish passports if they have a certain level of assets in this country.
The budget 2010 documents giving full details of the changes can be found here, for those with nothing better to do!
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