Daft Property - Irish Property News

LOW-paid workers will be dragged into the taxation net and middle-income earners also face a wide range of tax hikes in the most draconian Budget in the State's history. Taoiseach Brian Cowen yesterday quelled pressure from within Fianna Fail to call an election and will push ahead with plans to cut €6bn in the 2011 Budget on December 7. After being forced to call a by-election in Donegal South-West, the embattled Coalition is now facing the prospect of its majority being reduced to just two for the crucial Budget votes. But Mr Cowen is adamant the Government will stay the course and see through the €6bn austerity package for next year, consisting of spending cuts of €4.5bn and €1.5bn in increased taxes. The Coalition also expects 45,000 workers to emigrate from the country in 2011, leading to just a small rise in unemployment as those who can't get jobs will opt to leave the country instead. For those in the workforce, the prospect of a wide range of tax hikes is on the cards,

Cowen issues warning about hairshirt budget: 'Major hole' in tax base must be filled... TAOISEACH Brian Cowen last night set the scene for a hairshirt Budget by delivering a stark warning about the state of the public finances. In an off-script address at a chamber of commerce event in Monaghan, he said he wanted to bring it down to "brass tacks", instead of talking about all the zeros and the billions. He said the Government was trying to fix the "major hole" in its tax base, following the disappearance of one third of revenues due to the economic crisis. "This year, we're spending €50bn and our revenue base is €32bn. Let's put that in context. One half of total revenue is being devoted to the health service presently," he said. Mr Cowen went on to say that social welfare, including pensions, child benefit and disability benefit, accounted for two-thirds of tax revenue. "So if you were to take health and social welfare alone, you woul