Wednesday, May 11, 2011

Coming to a predatory government near you: Ireland taxes private pensions

Some of you maybe wondering what does Ireland's politics have to do with us? Well consider this a glimpse into our possible future.

Business Insider: 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.
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.
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. [MORE]

I know some of you might be tempted to think that .6% isn't a whole lot, but remember these are pension funds. Calculate the amount taken in taxes over 20 or 30 years and you will see just how much the government robbed you.

Ireland's move is basically what happens when a government cannot come to grips with spending. When starving for revenue the so called "benevolent" government that was out to save every citizen from any and all struggles in life morphs into a predator. This predatory government no longer sees bright red lines that should not be crossed, instead it only sees untapped sources of revenue. Tax private pension - no problem, tax the middle class - no problem, outright confiscate private wealth - you betcha.

So as you watch Republicans and Democrats fuss and fight over cutting a few billion here and there while our debt just piles up, know this: sooner or later they WILL be coming for whatever you got.

Via: Memeorandum
Via: Business Insider

1 comment:

Lisa, An American Mom said...

I believe you're right. It's not a matter of "if" this will happen, but when. Scares the crap out of me. If our retirement savings aren't safe, then really nothing is.

Time to put the money in the mattress? Ugh.

Related Posts with Thumbnails