Irish Government Plans to Raid Private Pensions for Govt. Spending

Not an uncommon tactic in South and Central America... And it's something to watch for here in the US.

From the Business Insider article by Joe Weisenthal and Gregory White:

"The Irish government plans to institute a tax on private pensions to drive jobs growth, according to its jobs program strategy, delivered today.

"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."

These temporary taxes have a way of not being so temporary as government spending increases-- which is what usually happens when money is raided-- er, taxed-- from private accounts.

"Ireland's ability to levy further taxes on other parts of the economy is restricted because its economic growth has been inhibited in the wake of a financial crisis that crippled its banking sector and decimated its public finances.

"Unwilling to budge on the country's low corporate tax rate, Enda Kenny's Irish government has chosen to target pensioners for funds to grow the economy. Whether it turns out to be an example to other countries seeking alternative ways to raise revenues with aging populations is yet unknown."

Ah, the wonders of overspending government...