Articles for 2016's budget

Increase finance for social housing by invoking 'structural reform' clause of Stability and Growth Pact

Government could substantially increase the resources available to finance social housing by invoking the structural reform clause contained in the EU’s Stability and Growth Pact.This clause allows Government’s to cater for the short-term costs of implementing structural reforms that will have long-term positive budgetary effects.

Distributive Effects Budget 2016

Each year, on the day after the annual Budget is announced, Social Justice Ireland produces an analysis and critique of that Budget. Included in that document is an assessment of the direct distributive impact of the measures announced by Government. These principally capture changes to income taxes, welfare payments and other universal payments/entitlements.  This document reproduces the most recent analysis, following Budget 2016, and also provides more details on the approach taken by Social Justice Ireland to generate these results.

Budget widens rich-poor gap by €506 a year

Budget 2016 was the fifth regressive Budget in a row. While it was not as regressive as in previous years and contained some gain for everyone, there was much more for the better off and far less for poor and vulnerable people. 

While single unemployed people will gain €95 a year, single people earning €75,000 will gain almost ten times as much i.e. €902.  In the case of couples, the unemployed will gain €157 a year while a couple with two earners on €125,000 a year will gain nine times as much i.e. an extra €1,408 a year.

Budget tax proposals would favour rich at expense of lower income workers

Some tax proposals currently being considered by Government should be rejected because they would give far greater benefit to people earning higher incomes while giving nothing to lower income employees according to a study conducted by Social Justice Ireland.   The study shows that four of seven options to reduce income tax currently being considered would be profoundly unfair because they would favour only those with higher incomes.

Tax cuts will hurt the old, the sick and the vulnerable

Social Justice Ireland has called on Finance Minister, Michael Noonan TD, to RAISE taxes and not reduce them in the Budget for 2016.  This is not the time for Tax-Cuts. All available resources should be used to invest in addressing Ireland’s major deficits, in areas such as caring, housing and poverty that affect the young, the old and most in between.