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Tax breaks
Government gives €5 billion hand-out to rich

By Michael Murphy

The Fianna Fail/PD government have forgone €5 billion in taxes by some of the wealthiest people in Irish society over the last number of years. Through a clever system of financial schemes introduced in 1999, the FF/PD government have assisted millionaires to avoid paying huge sums of tax.

Many builders and developers have benefited by €1.43 billion in unpaid taxes between 1999 and July 2006 through participation in a scheme for urban renewal. They buy up dilapidated buildings, redevelop them and for this they get millions off tax bills, in many cases up to 43% of the cost of the buildings. If that is not bad enough, it is clear that many of these people have used the scheme to avoid paying taxes on property they would have bought irrespective of the scheme. It’s a complete con.

Brian Cowen in the latest finance bill has allowed for other tax "relief" schemes including some that will net the rich approximately €850 million in tax breaks for those in private childcare, and providing private services and buildings in the health service.

It has also become clear that many private business people who own their own companies are pumping huge amounts of the company’s money into various pension schemes and then claiming massive tax free pension payments on retirement. For instance, two people had pumped €100 million into a fund from the company money and on retirement they were able to take a payment immediately of €25 million tax free!

This is essentially legalised robbery by some of the wealthiest sections of Irish society, facilitated and indeed organised by the government.

If all this were not enough, the government have announced they are going to buy the West Link bridge from National Toll Roads to the tune of €1 billion of tax payers’ money.

In the same week as these incredible scandals, the Irish Nurses Organisation have revealed that the never ending crisis in A&E just gets worse. On 8 February 2005 there were 246 patients on trolleys in hospitals throughout the state. The figure for the same day this year is 347, an increase of over 100.

A massive 87.7% of GP’s in a recent survey said they don’t believe that the health service has improved since Mary Harney took over in the department. It is clear that she has delivered far more for her big business wealthy friends than the thousands of patients and doctors and nurses in the health service. A fraction of the money siphoned off through these tax schemes could bring an end to the misery of those on trolleys in hospitals.

These examples leave no doubt once again that this is a government of big business and the super rich. Mary Harney talks of a world class health service yet she and her government implement policies that make the already super rich, richer at the same time as hundreds lie day in day out on hospitals trolleys. This is the logic of an economic system that always puts the profits of the wealthy ahead of the needs of the majority. It is for this reason that socialist party stands for a socialist society where the wealth and resources are used for the benefit of all.