I’ve been good about getting out for walks after work so far this week. Following a relatively warm weekend, cooler air has returned, with highs in upper 50s F / low 10s C, but it’s been mostly dry. There have been more beautiful sunsets in the sky above Dublin.
Budget Day in Ireland
The topic that has dominated the news in Ireland today is the government’s budget. There are an overwhelming amount of details. I’ve tried to capture the most important parts in the following summary, in part because it gives me an awareness of Ireland’s budgetary policy but also to give contrast to tax policies in the U.S.
Ireland’s fiscal picture in brief:
€100 billion total government revenue
€240 billion national debt
60% debt-to-GDP ratio (compared to 76% for all EU countries combined)
General highlights:
• €4.7 billion budget package includes €1.5 billion in new spending and €520 million in tax cuts
• Standard tax-rate bands increasing by €1,500 – so those on lower end of economic spectrum will pay less
• Minimum wage rises 30 cent to €10.50 per hour (~$12.60 per hour)
• Cigarette tax going up by 50 cents
• Income tax deductions up to 30% of home utility and internet expenses while working from home
Parents/kids:
• Parent’s Benefit extended by 2 weeks to 7 weeks from July next year
• 350 more teachers in primary schools to reduce student/teacher ratio to 25 to 24 pupils
• 980 additional special education teachers and 1,165 additional Special Needs Assistants
• Back to School Clothing and Footwear Allowance increased by €10 (Ireland’s government pays for kids’ shoes?)
Healthcare:
• Free GP care to be extended to children aged 6 and 7 years of age
• Free contraception for women aged 17-25 from next August
• Increased public prescription benefits to reduce monthly out of pocket maximum from €114 to €100
• €250 million to address waiting lists and €100 million to be made available for disability services
Transportation:
• 50% discount in public transport fares for those aged 19-23
• €1.4 billion to further develop public transport networks
• €30 million for protection and renewal of roads
• Petrol and diesel taxes will increase, some electric vehicle credits
Other:
• New 3% “Zoned Land Tax” (based on market price of land) to encourage the use of undeveloped land that is zoned for residential development
• Funding for the establishment of the Gambling Regulatory Authority (this didn’t exist yet?!)
• More police, more ICD beds, modest increases to social welfare and pension benefits
• Extension of the COVID Employment Wage Subsidy Scheme until 30 April 2022
Founding member of The Chieftans passes away
In other news today, the founding member and leader of The Chieftains, Paddy Moloney, has died at age 83. I saw The Chieftans perform at the Red Rocks Amphitheatre outside of Denver in August 1995, the summer before my senior year of college. The concert also included Sarah McLaughlan, who if I recall correctly went on before The Chieftans, who were considered the bigger act. My Aunt Pat loved their music, and I believe met Paddy Moloney himself (or at least visited his pub) during a trip to Ireland with my sister Ginny back in the 2000s.
Until next time….
