What The Future Looks Like: Ireland Raids Private Pensions To Fund Government Spending
Ireland is in a debt crisis not at all unlike America’s. They’ve got huge spending commitments, and are desperate for revenues. Now they think they’ve find a new treasure chest of revenues. Specifically, the retirement funds of the country’s citizens.
Without the ability sell debt due to soaring interest rates, and with severe spending rules in place due to its EU-IMF bailout, Ireland has few ways of spending to stimulate the economy. Today’s jobs program includes specific tax increases, including the tax on pensions, aimed at keeping government jobs spending from adding to the national debt.
The tax on private pensions will be 0.6%, and last for four years, according to the report.
In other words, those who were wise and saved for their futures will be punished by their government which has been spending irresponsibly.
As bad as this is for the Irish, what we as Americans must worry about is the risk of our current leaders trying to “win the future” by raiding our retirement savings.Tags: deficits, ireland, national debt, Pensions