Surely, one must have a degree of pity for poor Fianna Fáil councillors and candidates who will have to knock on doors and defend Tuesday’s Budget. Anger levels are already at breaking point and the Government’s decision to target parents rather than pensioners this time, will profoundly change the political landscape in Mayo for years to come.
The up and coming Local Elections in June will certainly test this theory. So, to help matters along I will outline a few questions that people can ask of Fianna Fáil candidates at the doors, particularly if you have been affected by the sharp cuts imposed on Tuesday.
This Budget places an enormous burden on middle-income earners, between massive taxes on gross income, loss of early childcare supplement and loss of mortgage interest relief. Taken together with the income levies of October last, middle-income families will face a significant drop in their income. A couple with one PAYE income earner and two children under five, earning €15,500 are losing €1,154 a year. The same family on €30,000 are losing €1,680 in this tax year.
In a town like Castlebar, an average seven per cent cut in pay for public servants like teachers and nurses will hit hard. Factor in a 25 per cent increase in VHI bills; the €1,500 registration fee for third level, and more third level fees on the horizon and you have a very upset electorate. It seems that the people who have to pay for everything, were asked to pay heavily – again.
The abolition of the Christmas bonus for social welfare recipients amounts to a two per cent cut in standard social welfare payments. This will put huge pressure on parents at Christmas time and will seriously affect elderly people who are trying to heat their homes in the depths of winter.
Now, if the above has seriously affected you, feel free to ask these questions when Fianna Fáil candidates turn up at your door. And don’t be afraid to keep them for a while:
1. Why were tax exiles left untouched? Everyone else is asked to do their patriotic duty and take the pain – just not the ones using their passports to evade tax.
2. Why has a review of tax reliefs been put on the long finger again? Minister Lenihan gave yet another warning to those with money to hide that he will come after it, just not yet.
3. Why was there nothing done to touch huge self-administered pension schemes? Michael Fingleton’s €28 million pension is safe. Landlords’ mortgage interest relief was only shaved by 25 per cent, despite the fact that a phase-out could have saved €500m this year.
4. Why was there no top rate of tax on high earners (such as 48 per cent for people earning over €100,000 )?
5. Why was there no attempt made to tax the wealth generated by the so called “boom”? Thousands of millionaires flaunted their wealth over the last few years made in land deals, property speculation, and auctioneers’ fees. Why did the Minister not target the extra properties bought and investments made with the proceeds of our construction bubble?
This Budget is another bailout for the banks. The Minister for Finance signalled his intention to take €80 billion of bad debts onto the State’s balance sheet, while the people who racked up those debts are left in place to continue running the banks. These bad debts include foreign loans and debts incurred on property and land abroad.
There will be some shock results in Local Election count centres on June 6. Labour and Fine Gael candidates right around the county will, without doubt, gain substantially as many voters will want revenge for the severity of this Budget and the decisions to target middle income families to pay for bank and government mismanagement.
