Make The Rich

‘6% VAT in Republic of roland) ot Vincent Brow ne’s M leading Browne bY economists are ting austerity ing class into accep with his -csent crew back to anti-Imperialis farmers, speculators and foreign capitalists.Ireland’s foreign debt now totals £4 billion. Fianna Fail and the Coalition agree that this debt arose because the nation is living beyond its means. By this they mean that: the country cannot afford to employ 300,000 workers — a quarter of the entire workforce — to look after educational, health and social welfare needs. So the major parties want to reduce the need to borrow from abroad by cutting back expenditure on public services and by increasing taxation on wages and consumption.

The argument that a state with a small population is overdoing it by Fi rge against sq wandermania agill has led ae? charg! ant to railroa otten most predic . of Thatcherites pedis dividends In the long ru m Vincent, itp MANY MYTHS HAVE been expounded in the media about public money “Squandered” on health, education, and capital projects with a resulting huge foreign debt. Right-wing economists have attempted to use workers’ justified anger at crippling PAYE taxes to call for cuts in government spending. The following article by BRENDAN KELLY explodes those myths and shows how public money needs to be redirected away from filling the pockets of big employing 300,000 workers to service public needs might seem reasonable at first sight. But it misses the real point. Southern Ireland has a million people — a quarter of the population — living on or below the poverty line. Without proper state aid and services this section of the population would suffer severe distress.

In addition to our poor, even those not caught directly in the “poverty trap” also need State services. Ireland has a high rate of dependancy.

Since 41% of the population is either under 14 or over 65 years of age, it cannot fend for itself.

helpless sections of society. For and hospitals, how many of our health workers can we afford to sack?

southern. state spends more on population in Europe. In the bring us up to British standards.

TAXATION AND WORKERS » A bunch of the works taken Up ment goes, workers benefit most Go ictions Wrong.

pay most.

This argument is also misleading.

State spending on social needs is important to the profits of the workers. Yet the contribution to Of direct taxation on all income, is added to not only by the fact AN ALTERNATIVE WORKERS’ BUDGET The £2 billion a year spent by the State, therefore, is not just wasted on expendable luxuries. It is really a small but vitally essential cushion against the ravages of an impoverished and underdeveloped economy. Any serious reduction in public service employment would simply tighten the screws on the poorer and more example, with over-crowded schools 40,000 teachers or 60,000 nurses and After health and social welfare the education than on anything else. Yet this spending is the lowest per head of national school sector an additional 4,000 teachers would be needed to This is just one small indication that state services far from being overabundant, are in fact far too meagre.

In addition to cutting state services the major parties also want to make workers pay more for them, through higher taxation. After all, the argu- wealthy.

from state spending so they should as much in the interests of employers as workers. An educated, healthy, properly housed labour force is as employers as to the well-being of State finances by the wealthy profitearners is practically non-existent.

workers pay £87 out of ever £100 while the employers pay only £7. Direct taxation on income (PAYE) accounts for just under half of all taxation. But the rest of taxation falls mainly on items which affect workers most — VAT on purchases, excise duties, import taxes. George --Colley,. former Minister for Finance, estimated that 30% of what remained of a worker’s income after PAYE was taken in other forms of taxes.

Tax discrimination against workers that they carry an unfair share of the burden but also by the fact that their share is getting disproportionately heavier all the time. From 1972 to 1982 taxes on capital and profit declined from 1.66% of the total to less than 0.5%; at the same time the share of the PAYE sector (workers) rose from 25% to 40% of all taxes.

The major tax demonstrations and strikes of the past few years indicate that the point has been reached where workers not alone do not want, but simply can’t shoulder a heavier tax burden. The present level of taxation cannot be maintained, never mind increased, without altering the tax structure.

So how can the present level of state spending on social needs be maintained and increased without incurring more foreign debt or placing the burden an workers?

AN ALTERNATIVE WORKERS’ BUDGET There are three main ways in which this can be achieved: basic changes in the nature of existing state spending; increased productive investment by the state; shifting the tax burden decisively onto the i) Changes in State Spending Not all state spending goes towards social needs or productive activity. For example nearly £500m is spent on ‘Law and Order’. That is to say millions of pounds are spent propping ‘up a border which nobody wants and fighting a ‘crime wave’ which is fueled by extreme social deprivation. The absurdity of this kind of state expenditure can be seen by any thinking person. For example the “Youth and Justice” report found that 48 out of 50 young offenders come from jobless homes. At the same time experts estimate that the £500 million spent on Law and Order could produce 25,000 product. ive jobs which would be no burden to the taxpayer. Surely this would be a more positive way to eliminate crime and give real justice? ii) Productive Investment Productive investment by the state comes under the Capital Budget which this year amounted to £2000m. But most of this investment is “productive” in name only. A total of £1,281 — 64% — will be spent state-funded construction. far below what is needed for hous hospitals, schools, roads, etc. But | main point is that most of Pott <« to private construction compan! This will mean a) very litte vain: for money since the construction companies are a by-word fay revenue to ease the tax burd t One of the most cbyiou turn the Capital Budgci productive money spinni can raise State money for sa needs, is to. nationalise ihe | Industry and create a Stat tion Company. In general ment under the Capital Budve be througn state companies. W necessary private compan! sector should be nationalised ¢ accomplish this.

RANCHERS iii) Tax the Rich Immediate steps to rais State spending: + a) Tax the Multinatic firms receive huge grants | ment institutions. Yet their pre — which.are amongst ine highest the world — are almost entire free. Increasingly these pi! repatriated without any the Irish economy or p b) Tax the Big Farmers — ¢ of the income which arises culture comes from These subsidies, in acc Ne government policy go largely 1 big farmers. Yet the “rari only 14% of the entire ingo bill.

It is true that the avere Ta income is well below ih agricultural sector and (hal man farmers are too poor ic | t a small clique of dig fabulously wealthy. ! last year while average [arin in declined, ‘cattle: prices yose by Uy) 30%. It is obvious that the big farmers engaged in this oll @ ~trade-have. thrived wiijle L165 farmersHavesgone to Wig wan big farmers must be made iy py through the nose by a mich tisher rate of income tax.

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