Tuesday, May 10, 2011

Gold strike in Ireland: private pensions

When Irish smiles are eyeing ... pensions.
Which thumb do you want, in which of your eyes?

There are not enough prosperous businesses to tax. Houses sit empty. Even government can't hire enough of the population to keep people off the dole. Where does The State turn for revenue?

In a move many distinguished paranoid conspiracy theorists predict will soon be standard operating procedure in the United States, the Irish government has shown the way. It has found its shamrock: private pension plans.

From An Roinn Airgeadais -- Ireland's Department of Finance to the non-Gaelic among us -- comes this announcement:
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.

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.
Got that? If you are a son or daughter of Eire, your paycheck has been taxed at some rate that doesn't bear thinking on all your working days. Out of the pension you fondly trust to shelter yourself from the cold winds of old age, the government is going to help itself to 0.6 percent of that (annually, if I understand the statement). Only temporary, for four years. After that it'll be 1 percent. Then ... I don't have to paint you a landscape, right.

"Temporary" is defined, in the Official Government Dictionary, as "until we extend it." Well, it's a "levy" -- feel better now? Sounds a much sweeter note than "confiscation."
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.
Don't count on it being unknown in the United States past the next presidential election.

1 comment:

Maria said...

Already being done in other Euro countries; Hungary and Poland for instance. Hungary's is particularly lovely: hand over your private retirement funds to government control, or lose all right to the government pension you've paid into all your working life. If you opt to keep your private funds, you not only lose your government pension, but you still have to keep paying into it. Read more here:


No coincidence to me that they started to confiscate private pension funds in the ex-Communist countries first; the sheeple are probably used to it.

Yes, they will start demanding our 401ks and the fact that most of the people who have significant funds in 401ks are old and white, will of course, be used to justify the looting.