Ireland to tax private pensions.

[Guest guest]

No matter how much a government taxes, it will never be enough for its spending schemes. Ireland is leading the new charge of taxing private pensions to fund a "jobs" scheme. What's dangerous about this is that it isn't taxing income, but assets. If government starts taxing on the basis of what you actually own, not just how much one profits from it, they capital will quickly vanish. I'm betting a lot of people are going to try to cash out their pensions and hide the money, maybe not right away but certainly later as the tax rate is raised.

Quote:

The various tax reduction and additional expenditure measures which I am announcing today will be funded by way of a temporary levy on funded pension schemes and personal pension plans. I propose that the levy will apply at a rate of 0.6% to the capital value of assets under management in pension funds established in the State.It will apply for a period of 4 years commencing this year and is intended to raise about €470 million in each of those years. The levy will not apply to pension funds established here and providing services and benefits solely to non-resident employers and members. Further details regarding the proposed application of the levy are set out in the Summary of Initiative Measures.Read more: http://www.businessinsider.com/irish-bo ... z1M3TjmYer

Note: local governments already tax based on assets such as property taxes and car taxes. However, this is the equivalent of the feds laying a tax on the value of your house and car.