FAMILY UNDER ATTACK IN THIS WEEK’S BUDGET – Ó DOMHNAILL

Irish Families will be under attack by the Government  this week as the Minister for Finance,  Micheal Noonan prepares to deliver his 2013 Budget on Wednesday.

The Donegal Senator Brian Ó Domhnaill said today ( Monday 3rd December) “ Despite many promises made before the last General Election by the Government parties to support mortgage holders and struggling families. However both FG and Labour have broken all of those promises by inflicting more pain and hardship on struggling families across the country country through a raft of cuts and cost of living increases. Leaks over the weekend suggest further attacks on Irish families”

Property Tax

Ó Domhnaill went on to say; ” 450,000 people live in homes where difficulties in meeting the monthly mortgage payment are being experienced. Hitting these households at this time with an additional charge which takes no account of ability to pay would risk driving them deeper into financial difficulties. Over 50% of residential mortgages are in negative equity, including the majority of those taken out since 2000.”

“Imposing a recurring tax on an asset which has a negative net worth in circumstances where people have no option to dispose of the asset is fundamentally unfair. The recovery in housing transactions is vital to the recovery of the economy.  The introduction of a property tax is likely to further delay any recovery in the housing market, further damaging the domestic economy.”

“Between 2002 and 2009 nearly €5.5bn was paid by purchasers of residential property in the form of Stamp Duty. In addition the sale of new residential housing has generated over €14bn in VAT receipts for the Exchequer since 2002.If a residential property tax is to be introduced fairly, a normalisation of the housing market, including measures to deal with the mortgage arrears crisis, is an essential prerequisite. In addition comprehensive logistical planning is required to avoid a re-run of the fiasco surrounding the Household charge. Neither of these conditions are likely to be in place for several years.”

“No – one is forcing the Government to introduce a property tax. The Government’s attempts to shift blame onto the Troika, the previous Government or anyone else are nothing more than a smoke and mirrors tactic to distract from what is their own policy decision.”

“This is simply the wrong time to introduce a Property Tax. The Government must firstly get people back to work and deal with the Mortgage arrears crisis It risks damaging an already weak domestic economy. It would fall disproportionately hard on families already struggling to meet mortgage payments and other household and living costs”. Concluded Ó Domhnaill.

ENDS

Posted: Dec 3, 2012     |     Categories: Uncategorized