Sunday, July 02, 2006

A money saving Idea.

Here is a new idea about how the state can save some money. Make public sector workers tax free.

So how would this work. The public sector in Ireland accounts for about 257,013 people or roughly 13% of the workers in this state. Now their wages are coming straight from the government coffers. Their incomes are then taxed at the standard rate compared to everyone else’s thus a certain amount of their income goes straight back into the hands of the government. However during this process their tax affairs have to go through the taxman. This creates a large amount of resources being spent on merely managing taxing the states money. The state is making no money on this. It is in fact losing money on this as it is deploying resources on internal money.

So what I suggest is that the government make public sector workers tax free workers. Thus reducing the resources and money spent by the revenue commissioners. However their wage levels will be reduced to the point where their pay level is equal to their current net-pay level. The people working will see no difference. They will still be getting the same amount of money into their back pockets. However the state will see a gain as they will not have to spend the resources on taxing their own money.

1 comment:

Anonymous said...

stick to the day job :)