Tag Archives: credit crunch

Taxman

If you drive a car I’ll tax the street,
If you try to sit, I’ll tax your seat,
If you get too cold, I’ll tax the heat,
If you take a walk, I’ll tax your feet.

Should five per cent appear too small,
Be thankful I don’t take it all.
‘Cos I’m the Taxman,
Yeah yeah, I’m the Taxman.

And you’re working for no one but me.

I was reminded of the above Beatles song while listening the other day to Joe Duffy on RTE’s ever popular Liveline in which a cash strapped small business owner told the nation how a 6,000 euro tax arrears bill, through penalties and interest, had quickly notched up to 16,000 in a very short space of time. The Revenue Commissioners it seems, cared little about his financial problems, were pursuing him for the full amount,  and had sent the Sheriff  to collect their money on a number of occasions.

One has to really question the Revenue Commissioners approach to this problem, especially in view of the current financial difficulties caused by the recession and credit crunch. Whilst their primary purpose is to collect taxes due to the state, they also have a responsibility to ensure that in doing so they do not damage the economy further.

Rather than penalising and taking such a heavy handed approach with taxpayers in arrears, why does the Revenue Commissioner not take a NAMA type approach to the problem? They could for instance adopt a policy of gathering the arrears over an agreed and sustainable payment period, as long as current taxes are being paid also. After all, the much put upon taxpayer, trying to survive a recession caused by banks, developers, and Government incompetence, sees their taxes going not to health, education, and other services, but to bolstering the finances of politicians expense accounts, bailing out bankers and developers, and rewarding incompetence and greed with large pensions and golden handshakes. If the Revenue Commissioner adopted a more pragmatic and conciliatory approach to these troubled companies, they could help alleviate the financial difficulties of many small business’s, maintain current tax revenues, and hopefully keep the jobs (and the tax revenues they generate) in these business’s long enough to be able to survive the recession which is crippling them through no fault of their own.

If the Revenue Commissioner does not already see that this makes good sense for our economy, and for our society, then should he/she be collecting our taxes at all?  Or should someone with a more sensible approach take over the role? Someone who realises that being a taxman or taxwoman is not just about collecting revenue, it’s also about ensuring our economy remains healthy and is able to maintain the revenues required to support services.

I can’t see where top heavy penalties, liquidations, business closures, and forcing people on to the dole queues will help that.

‘Cos I’m the Taxman,
Yeah yeah, I’m the Taxman.


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It’s Not Easy Being Green!

It’s not easy being green. So goes the old Van Morrison song, and in today’s political and economic climate, as John Gormley and the Irish Greens are finding out, never was a truer word spoken (or sung).

Having derived their political power from concerns about the future of the planet they seem to have largely forgotten that they need to have a social vision as well as an environmental one. Their support of Fianna Fail seems to be predicated on them getting what they want in terms of bettering our environment, at the expense of bettering our society. The unwritten rule seems to be that Fianna Fail can bail out banks, slash and burn services, and generally have a free hand at whatever they want as long as they allow the Greens to pursue and implement their own agenda. Listening to John Gormley today on RTE one would get the impression that he was the one responsible for the recent and forthcoming amendments to the NAMA legislation. No doubt someone more qualified than me will remind him that were it not for the grass-roots revolution in their Green party, John and his fellow Greens in Cabinet would have allowed the NAMA bill to go through unchallenged.  Their relative silence regarding the social devastation which much of the McCarthy report will bring on the most vulnerable in society is indicative of their ‘keep the head down and plough on with our own Green agenda’ policy which they seem to have  adopted since taking up their positions in Government. One does not have to be a Pulitzer prizewinner to know that were the Greens in opposition right now, they would be screaming from the rooftops in protest at the McCarthy report and the totally unbalanced Commission on Taxation Report which puts the burden on ordinary citizens and gives more tax breaks to business thus allowing the economic imperative to supersede the social imperative yet again.

Whilst I am in total agreement with them on their relentless pursuit of the Green agenda, I am also fully aware that these Green policies and initiatives will not be sustained if the Green Party is, like the PD’s, decimated and banished to history in the next election. Mr Gormley’s call yesterday for a social dividend to be paid from NAMA might be seen as a sea change but might also be too little, too late. The price they might have to pay for their political singularity could be total annihilation and a collapse in public support for all things Green.

That, dare I say it, could set back the environmental agenda by decades, something which would be disastrous for everybody and which could plunge Ireland into an even deeper economic, environmental, and societal black hole.


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