Summary of economic Pa

Damien Kiberd has summarised the economic pain inflicted on the economy and what is likely down the tracks. I have outlined it here.

Cuts to July 2010-07-04

Since July 2008, Lenihan has cut €15.4 billion

Spending cuts €9.9 billion and tax increases €5.5 billion

In 24 months this is 9.6% of GDP or 12% of GNP

General Government Deficit is 11.6% (target 3%)

So far

Abandoned final half of pay deal “Towards 2016”

Cut Social welfare by 4%

Cut Child benefit

Abandoned Christmas Bonus double welfare payment (Skip Christmas and go to new year on board game)

Imposed 7% pension levy in public sector

Cut public sector pay by 7%

Cut funding of Health Service

Doubled income levies

Raised PRSI ceiling by 50%

Increased Capital taxes

Accelerated payment of Capital Gains Tax

Increased petrol/diesel taxes

€200 each on non-principal private residences

Tax yield down from €48 billion to €31 billion

In 2011 a further cut of €3 billion is planned including €1 billion off capital spending

NAMA costs €40 billion upfront payments to banks

Anglo €22 billion

Irish Nationwide Building Society €5 billion

EBS €1 billion

To come

Water charge of about €170 per house – flat rate

Property Tax of up to €3000 per dwelling – probably in the hundreds for the average house.

By the end of this, voting for FF/PDs is turning out to be the worst collective decision this country has ever made.