THE younger generation should keep on paying tax well into their 70s to pay for elderly care, a top economist said yesterday.Sir Andrew Dilnot declared it was “perfectly plausible” to ask younger workers to pay out - but unfair to burden the older generation.The academic, who led an independent commission on social care in 2011, said forcing workers to pay National Insurance after retirement age was one solution to the social care crisis.Quizzed on the issue yesterday he said the option should not be “completely ruled out”.He said: “I don’t think we can think of imposing National Insurance contributions at anything like their full rate on people who are already beyond retirement age because that’s wasn’t the deal they signed up to.“But saying to younger generations ‘it’s possible you might have to make a contribution that continued beyond your retirement to help pay for example the cost of a social insurance system to … [Read more...] about The younger generation should keep paying tax ‘well into their 70s’ to fund elderly care, economist claims
Social insurance tax
THE case for pumping billions extra into crisis-hit social care is unarguable, warns the head of the NHS.Simon Stevens said care homes must be at the front of the queue for extra cash.And he warned the Government may need to introduce a new social care tax or compulsory insurance.Ministers are already considering hiking council tax seven per cent to look after the elderly and disabled.It comes as fewer people who need assistance to wash, dress and eat are getting such help — despite growing numbers of old folk.Councils have seen their budgets slashed by 40 per cent over five years.And they claim they will need an extra £2.6billion to provide care for the elderly and disabled by 2020.Speaking to a House of Lords committee on health funding, Mr Stevens warned lack of social care provision is the biggest crisis facing the health service.He said there is a “very strong case for some immediate support now”.Mr Stevens told the NHS Sustainability committee: … [Read more...] about New social care tax ‘must be introduced to help pump billions into crisis-hit care homes’
PASCHAL Donohoe will deliver his first Budget as Finance Minister today.With €170 million carried forward from last year’s Budget – early signals suggested that there will be no giveaway in the next Budget.In the measures outlined by civil servants in a briefing document prepared for Donohoe when he took over as Minister for Finance from Michael Noonan, it pointed out: “Available fiscal space is currently projected to be tight in 2018 but should ease thereafter.”And speaking on RTE Radio One earlier this year, Minister Donohoe said: “The key objective for next year is that Ireland can balance its books in 2018. This is important in the context of a risky world.”Here we look at what we know so far – what’s going up and what’s going down.Possible USC changeWorkers will find an extra fiver in their weekly pay packet as USC is slashed in today’s Budget.Finance Minister Paschal Donohoe has lined up USC cuts for all and income … [Read more...] about Budget 2018 – what changes are in store on taxes, cigarettes, alcohol and social welfare – here’s everything we know so far
Latvia is now actively gearing up for the introduction of the euro after EU finance ministers recently announced the country's entry into the eurozone for January 1, 2014. Although Latvia has convincingly fulfilled all of Maastricht's criteria, some fear that existing tax benefits for holding companies in Latvia will make it into the new tax haven of the eurozone; what some have termed "the new Cyprus." And in some corners of this Baltic nation, a casual observer could be forgiven for thinking that the country is indeed trying to emulate that southern island. Every summer the glitz and glamour of show business makes tourists flock to Jurmala, a seaside resort about half an hour's drive from the capital Riga. For 12 years, the town has also hosted a song competition, "New Wave," whose participants include many aspiring singers from Russia and the former Soviet republics. The competition has become an informal meeting place for the wealthy and the powerful of Russia. Russian Oligarchs … [Read more...] about Latvia: ‘The eurozone’s new tax haven’?
When Bulgaria's Institute for Market Economics (IME) began touting a flat tax system for the country in the 1990s, it was seen as a crazy free market idea that would never become reality. But a lot has changed in the past decade. Bulgaria's neighbors have launched a tax revolution, with a total of nine Eastern European and former communist countries shunning progressive tax systems in favor of a simple, one-rate-fits-all model of taxation. Besides switching to a flat tax, the Bulgarian government also wants to cut social insurance contributions by 3 percent and increase pensions by 10 percent. Details of the tax proposal are being debated within the governing coalition. Fuel for economic transition Flat tax has been criticized as unfair to low wage earners Svetla Kostadinova, who heads the IME, a free market think tank based in Sofia, said she's confident that starting in 2008 Bulgaria will have a flat tax in some form. Kostadinova said she thinks the flat tax will further … [Read more...] about Eastern Europeans Eyeing Flat Tax