Exchequer tax take slightly below target in year to June

[ang]

Further proof that the measures being taken by Govt/IMF/EU are not working:-


The Government remains on target to meet its annual budgetary requirements at the half-year stage despite poorer-than-expected VAT and corporation tax receipts.The latest exchequer figures, published today by the Department of Finance, show that tax revenues at the end of June were just under €15.3 billion, some €115 million or 0.7 per cent below the target set by the department in January.Reflecting the continued weakness in consumer spending, VAT receipts were behind target by €134 million or 2.6 per cent in June, with €5.07 billion collected in the year to date.Corporation tax receipts were also behind target by €116 million or 7.6 per cent at €1.42 billion.On a positive note, income tax receipts came in almost exactly on target in June, with €6.03 billion collected in the year to date.The Exchequer’s income tax take was up 21.5 per cent up on the same month last year, reflecting the introduction of the Universal Social Charge.The other “big four” tax category - excise duties – was the only one to come in significantly ahead of expectations at €2.2 billion, €79 million or 3.7 per cent above target.The exchequer deficit for the first six months of the year stood at €10.8 billion, compared to €8.9 billion at the same stage last year.However, when the €3 billion used to recapitalise Anglo Irish Bank, Irish Nationwide and EBS is stripped out, the deficit actually fell by €1 billion.

http://m.irishtimes.com/newspaper/breaking/2011/0704/breaking54.html?via=news

Nice chart here from Constantin Gurdgiev on where we have been, where we are and where the Government expect us to be by the end of the year with the overall tax take:-

http://4.bp.blogspot.com/-8xgQ0kEcujU/ThII8IFDw5I/AAAAAAAAETo/KpDUm2UQhK0/s1600/Screen%2Bshot%2B2011-07-04%2Bat%2B19.22.48.png

[TotalMayhem]

Missing targets, are we? :D

[Sidewinder]

Well that graph makes it pretty simple.

Despite all the tax increases, the tax take in 2009, 2010 and H1 2011 has been static.

That 30bn or so is what we have to run the country on. That's all folks.

Decide what we really need, ringfence the essentials, make them cost 30bn, chop the rest, and do it in one fell swoop. Just get it over with and stop arseing about.

Course the easiest way to do this is to first tackle all the rigged and inflated prices, but Paddy remains stubbornly wedded to his belief in high prices, strokes and scams.

[ang]

Add in the interest on loan repayments which continually rise as we draw down the cash it doesn't leave a lot of room for manouvere.

In terms of figures we will be in a worse financial crisis than Greece very soon.

[morticia]

Add in the interest on loan repayments which continually rise as we draw down the cash it doesn't leave a lot of room for manouvere.

In terms of figures we will be in a worse financial crisis than Greece very soon.

It's certainly possible. I wouldn't discount the power of the fudge, though. the UK and US don't want us to go down and are starting to make noises about investment (windfarms etc), while the EU/IMF needs to make it look like one of the bailouts is working. Finally, once the Spaniards start teetering over the brink more seriously, some sort of money printing scheme by the ECB will be the only way of preventing utter chaos; it will be interesting to see if they take that route, or plump for the utter chaos in an "anything is better than inflation" bout of madness.

As for reducing outgoings to 30bn, nice thought, but not possible; when the 1/5 of the population in public sector employment default on their debts en masse, then the banks will need recapping again and that will cost more than paying those guys what they had been getting. It's not a goer unless the wage cuts are accompanied by a public sector debt forgiveness scheme. Which will itself cost a fortune..1/5 of all mortgages on a principal private residence to be reduced in line with salary cuts?

Work it out.... if mortgages are 120bn on principal residences, then 1/5 =24bn and reducing those by 50% would cost 12bn. And then there would be hollerings from the remaining unemployed that they want to stay in their homes, too.....and that's not even considering car loans, buy to let, holiday homes etc.

If they try any of this, moreover, the likes of me and the other half, who have all sorts of dual citizenships etc between us, will disappear off back to North America and leave the university sector, for example, with very few intelligent academics left standing. That won't do our ability to educate the next generation any good at all.....oh, and we'd be very tempted to leave the mortgage behind as well.....

as my maths teacher once used to say.."there's a simple solution for every complex problem, and it is usually wrong"

Cheer up folks, on the other hand, the Greeks have shown us that the EU/IMF are determined to keep on bailing, regardless of the can kicking accusations...

[ang]

Morticia this is exactly what Govt want less public servants more heading to far off lands and the house stays which mean the banks still have their collatterol (your home) on the balance sheet all works out perfectly for bank and Govt.

Now if you could pack up your house and bring it with you (forgetting to pay the mortgage as you leave) that would unravel a very nasty story for the bank ;)

[DCon]

Morticia this is exactly what Govt want less public servants more heading to far off lands and the house stays which mean the banks still have their collatterol (your home) on the balance sheet all works out perfectly for bank and Govt.

Now if you could pack up your house and bring it with you (forgetting to pay the mortgage as you leave) that would unravel a very nasty story for the bank ;)

I wonder are the banks/NAMA marking their property holdings to market?


House prices continued to decline in the second quarter of the year, two new surveys showed today.

Property site MyHome.ie said property prices fell 4 per cent over the three months, bringing the total fall since the peak to 40 per cent.

Prices for Dublin homes are down 46 per cent from peak levels.

The survey also showed that, based on average mix adjusted asking price, the average house price is now €249,000, compared with €260,000 three months ago.

In Dublin, the average price is the €286,000 compared with €302,000 three months earlier.


http://www.irishtimes.com/newspaper/breaking/2011/0704/breaking5.html

[DCon]

Noonan


'difficult' cuts in budget may touch €4bn


MINISTER FOR Finance Michael Noonan has indicated the budget adjustment for 2012 may be higher than the €3.6 billion specified in the memorandum of understanding with the EU-IMF.

Mr Noonan said yesterday the Government would have a correction “of about €4 billion” to make in next December’s budget, a slightly higher figure than that set out in the memorandum. He also warned of an austere budget in December containing cutbacks that would be “very difficult” to achieve.

http://www.irishtimes.com/newspaper/frontpage/2011/0705/1224300091222.html

[disability student]

Tax take is quite poor when you strip off such as PRSI and Income levy & Universal social charge to compare like with like.