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a tax on savings?

seabhcan

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Sep 3, 2007
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14,228
Printing money (or "Quantative Easing" as its called these days) lowers the value of all money held by savers, essentially taxing them. The UK is going this road and so is the US. Its probably a needed evil, but time will tell.

The ECB may or may not follow them, but at the moment Ireland is just waiting to see. I propose we don't wait, and that the gov tax savers in the March mini-budget.

A 0.5% tax on the value of deposits would generate about 2bln. It could be described as a levy to pay for the deposit guarentee. It might also encourage spending - as why keep your money on deposit when its getting taxed, might as well spend it.

To prevent offshoring the money, the tax could be on savings held world wide by Irish residents.
 
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HarshBuzz

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let's just call it the 'steal the assets of the prudent to pay for the stupidity of the foolish' tax

oh, and watch the entire deposit base of Ireland disappear offshore overnight

stupid idea, I hope this is not Labour policy
 

Middleaged

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Jul 30, 2008
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Are you saying tax the princple?

If so that would speed up the collapse of the banks.
 

TradCat

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Why can the state confiscate money you earn and not money you have? The assumption is that it has been taxed already when you earned it.
 

absconded

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Pardon my ignorance, but is a run on the banks not something we should be trying to avoid.
 

Skin

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So for every 100 euro I save I pay .50cent to the government??? Even though that 100 I saved comes from my earnings which have already been taxed????

Makes no sense.

A better idea would be to increase the DIRT (up to say 25%) on interest receipts greater than 1,000.
 

Fear Dorcha

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May 30, 2008
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50
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www.reverbnation.com
Printing money (or "Quantative Easing" as its called these days) lowers the value of all money held by savers, essentially taxing them. The UK is going this road and so is the US. Its probably a needed evil, but time will tell.

The ECB may or may not follow them, but at the moment Ireland is just waiting to see. I propose we don't wait, and that the gov tax savers in the March mini-budget.

A 0.5% tax on the value of deposits would generate about 2bln. It could be described as a levy to pay for the deposit guarentee. It might also encourage spending - as why keep your money on deposit when its getting taxed, might as well spend it.

To prevent offshoring the money, the tax could be on savings held world wide by Irish residents.
A jubilee would be better. Sure it would mean that foolish borrowers would get off the hook but lets face it they will still be foolish the next time around. Proper regulation will sort out a lot of that crap. The rest of us will be smarter and our savings will still be worth something.
 
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Would you be liable for the tax if the money was under your bed?

Would you be liable for the tax if the money was under your bed?
 

seabhcan

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Sep 3, 2007
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14,228
So for every 100 euro I save I pay .50cent to the government??? Even though that 100 I saved comes from my earnings which have already been taxed????

Makes no sense.

A better idea would be to increase the DIRT (up to say 25%) on interest receipts greater than 1,000.
DIRT is 26% now.

Taxing savings is no different from a property tax, which exists in many countries.
 

zakalwe1

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hang on, whats DIRT then?
 

absconded

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DIRT is 26% now.

Taxing savings is no different from a property tax, which exists in many countries.
Yes it is.
You can move your money much more easily than you can move your house.
If anything, it would be better to remove DIRT to encourage saving and investment from outside the state.
 

HarshBuzz

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Taxing savings is no different from a property tax, which exists in many countries.
please give us a reputable link to an OECD country which removes part of it's citizen's accumulated capital (in the form of bank deposits) via their tax system

nobody does this and for good reason

I really hope you do not have the ear of policymakers in your party
 

HarshBuzz

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DIRT is a 26% tax on the interest earned by savings.
the headline rate of DIRT is 23%, not 26%

(unless they sneaked it up overnight which is entirely possible with this Government :rolleyes:)
 

absconded

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please give us a reputable link to an OECD country which removes part of it's citizen's accumulated capital (in the form of bank deposits) via their tax system

nobody does this and for good reason

I really hope you do not have the ear of policymakers in your party
You are correct, we would be doomed if this happened.
The healthiest way to recapitalise the banks is for savers to be encouraged.
This policy if it were followed would see a flight of capital for fear of what was coming next.
I for one would move every penny I had abroad and take my chances with the Revenue Commissioners later, if they were still functioning.
 
Joined
Feb 2, 2009
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So for every 100 euro I save I pay .50cent to the government??? Even though that 100 I saved comes from my earnings which have already been taxed????
it's worse than that

it's been taxed twice already

political suicide to the party that introduces something like this

the people out in force on the picket line will be the pensioners, again, at the top of the queue, closely followed by the rest of us, me included
 

goosebump

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May 23, 2008
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Any measure that has an inflationary effect could be described as a 'tax on saving', in that the primary tax on saving is the inflation rate itself.

Conversely, deflation is a tax on investment, and has the equivalent economic impact of increased savings.

Hence, we try and maintain a steady, but low, rate of inflation, which is why central banks set their Price Stability target at inflation of 2%.

Given that all the indicators are now pointing towards a deflationary period, it makes sense for central banks to put the engines in reverse and start increasing Money Supply through QE.

What is important for us is that the ECB and BOE act in unison, so that we don't have to take a demand shock from a much weaker pound.
 

Skin

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DIRT is 26% now.

Taxing savings is no different from a property tax, which exists in many countries.
Apologies, I thought it was only 22%. Then it that case, raise it to say 30%.

Its not clear how taxing savings would be the same as a property tax unless you know in what form the property will come. Is is based on each property you owe? Is it based on the value of each property? Is it based on the size of the property? Or all of the above.

How would you tax savings such as if I move 3,000 euro out of one account (having paid my 0.5%) and placed it into another account for a better interest rate? Revenue would have a nightmare trying to follow everybodys money.

Best to stick with DIRT
 

atlantic

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Joined
Jan 25, 2008
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http://www.marketwatch.com/news/story/bank-england-cuts-rates-record/story.aspx?guid={E1B35879-BDA9-4A0B-9299-7E5DB7669EE2}&siteid=bnbh
 


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