Having so mismanaged its finances, Dublin now chooses loot private pensions.
There are a few problems with this, and not just the towering monstrosity of taxing already taxed income.
Apparently the move is to fuel government job creation schemes. Pension funds are invested to give a projected rate of return. A by-product of such investment is that jobs are created for others. In reducing the capital available for investment, job creation in response to natural and entrepreneurial demand will be stifled. In its place will be even more central planning and government distortion of economic calculation. As always with government job-creation schemes, much more will be destroyed than is created.
The temporary tax, it’s reported, will last for four years and be levied at 0.6%. No-one should believe this. It will not be temporary and the levy will increase over time. In the end the economic damage will enormous.
The very root of economic growth is saved capital. In denying ourselves consumption today for a return tomorrow we supply the kindling by which it can spark. Government attacks this very mechanism always, taxing from our tomorrow what is can consume today. Some of Ireland’s future unemployed will never know that measures such as these are those which kill employment prospects. To socialise the private debts of banks today and keep the government spending machine working, many will pay tomorrow.
The beast is always hungry. Where the rest of us must drastically reduce our consumption when in deep debt, governments will tax and spend. This is the case over much of the Western world. To change from such a disastrous course this fundamental fact of modern government must be realised by most people. Unless and until this happens governments will loot without end and real recovery will not happen.