But I Regress

Income Tax rates by Country based on OECD 2005...
It's insane how low our direct taxes are

Incentives for property investment? There are times I want to go into government buildings with some sort of brain detector, see can I find anything. The reason why the property market is moribund is that property is still insanely overvalued. Urging people to invest in something overvalued is not only what got is into trouble in the first place, it’s surely a form of fraud.

Insanity is repeatedly doing the same thing while expecting a different outcome.

This budget is going to make me worse off. This is not what I object too though. What gets me is that it will make people who are better off less well off than it will make me. This is something to do with it being a “jobs budget”. They don’t want to create a disincentive for the poor to work by taxing the rich too much.

I think they do their economics by voodoo and shibboleth. They have raised money today by every means conceivable except raising income taxes, because raising income taxes is a Bad Thing. The result is that we have a highly regressive budget that hurts the poor far more than the well-off. Certainly it could be counterproductive to pile on excessive taxation. But is it not even more mad, in the midst of economic disaster, to have some of the lowest direct taxes in the developed world?

My mother, confused about why she’ll be able to afford less fuel this winter, asked me “So why can’t they tax the rich?”

I thought for a minute, and replied “Mainly, because they’re rich.”

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But I Regress

Income Tax rates by Country based on OECD 2005...
It's insane how low our direct taxes are

Incentives for property investment? There are times I want to go into government buildings with some sort of brain detector, see can I find anything. The reason why the property market is moribund is that property is still insanely overvalued. Urging people to invest in something overvalued is not only what got is into trouble in the first place, it’s surely a form of fraud.

Insanity is repeatedly doing the same thing while expecting a different outcome.

This budget is going to make me worse off. This is not what I object too though. What gets me is that it will make people who are better off less well off than it will make me. This is something to do with it being a “jobs budget”. They don’t want to create a disincentive for the poor to work by taxing the rich too much.

I think they do their economics by voodoo and shibboleth. They have raised money today by every means conceivable except raising income taxes, because raising income taxes is a Bad Thing. The result is that we have a highly regressive budget that hurts the poor far more than the well-off. Certainly it could be counterproductive to pile on excessive taxation. But is it not even more mad, in the midst of economic disaster, to have some of the lowest direct taxes in the developed world?

My mother, confused about why she’ll be able to afford less fuel this winter, asked me “So why can’t they tax the rich?”

I thought for a minute, and replied “Mainly, because they’re rich.”

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Our Man In Luxembourg

European Court of Auditors
The Headquarters of the Society of Shepherds. 

Minister for Jobs, Enterprise & Innovation Richard Bruton has said the Government wants to see the nomination process of Kevin Cardiff to the European Court of Auditors through to its conclusion. (RTÉ News)

Why – what did he ever do to them? This is just going to be humiliating.

You can see the government’s standpoint – while also seeing how hopeless it is. They want to emphasize that they are a different regime from the one that let the Irish economy down the plughole. Well and good, but they have an uphill battle merely to convince the European Parliament that any Irish nominee deserves to be on the Court of Auditors.

We just had an economic collapse due largely to the ridiculous lack of oversight by our Department of Finance, with every sign of excessive personal closeness between government and the money industry. Why should anyone from a country like that be even allowed a nominee? The “Court of Auditors” is a rather dull-sounding name, but this is the EU body specifically tasked with fighting corruption. It’s like having the wolves nominate their shepherd representative. There’s really only one reason why they will accept any Irish representative at all: They have to. It’s in the treaties.

So there was every reason to expect that a nominee to the court from Ireland was going to come under the closest possible scrutiny. Yet what do we send? A man who held a top position in our disastrous Department throughout the boom and bust. A man who was actually present when the inexplicable bank guarantee was given.

They must think we’re joking.

Just Sign Here Here Here And Here

Shelby County Courthouse, Memphis, Tennessee, USA
"So what's the surpri... Was that a click?"

This is worrying stuff.

You’d hardly notice, but we’re being asked to change the Constitution this Thursday. Twice. Yet nobody is acting like this is much of a deal. The amendments are being thrown in with the Presidential election like some sort of democratic side order, and getting about as much attention. This despite the fact that a Constitutional amendment actually, you know, changes something, while a ceremonial President – in spite of the impression they try to create in their election campaigns – can change about bugger all.

These are not trivial matters either. One would remove the bar on reductions to the pay of judges, something placed in the Constitution deliberately to prevent the sitting government pressuring the judiciary. The other would allow the houses of the Oireachtas¹ to conduct their own quasi-judicial investigations. That would seem to give them quite a lot of power. How much? Well according to part of the proposed amendment:

4º It shall be for the House or Houses concerned to determine, with due regard to the principles of fair procedures, the appropriate balance between the rights of persons and the public interest for the purposes of ensuring an effective inquiry into any matter to which subsection 2º applies.’

So only the Oireachtas can say how much power it can give itself. Though it is of course restricted by law. Which the Oireachtas also creates.

Yes parliaments often have powers of investigation, but this seems very broadly drawn, and likely to make power in this country even more unbalanced. Government in a democracy is generally divided into three main branches: The executive, the legislature, and the judiciary. There is meant to be a measure of conflict between these roles, in order to ensure that everyone is watching what everyone is up to.

We’re a parliamentary democracy though; that immediately reduces internal contention because it means there is no effective difference between the executive and the legislature. Unlike countries with an executive presidency such as France or the US, the legislature elects the executive – which then pretty much dictates everything else the legislature does.

Another safety mechanism is a bicameral legislature; two houses each with oversight of the other – House/Senate, Commons/Lords, etc. Our upper house though is effectively the creation of the executive, which appoints the majority of its members. So no balance there either; whatever party wins most seats in an election just sweeps the board of executive and both houses.

That only leaves the judiciary as an independent power, and we are being asked to pass two amendments to our constitution, one of which will take away its chief protection against undue government pressure, the other of which will usurp some of its functions. Still wonder why I’m worried?

 

  1. Parliament/Congress

The Truth About The Truth About Dana

Kasha-Katuwe Tent Rocks National Monument, New...
Didn't really feel like putting up a picture of Dana. Here are some pretty rocks instead

Dana Rosemary Scallon, religious recording artist, Irish Presidential candidate and, er, American citizen, showed signs of distress in Wednesday’s TV debate and has said that “a vile and false allegation” about her family is “about to surface”.

W, as they say, TF?

Maybe it’s a fantastically complicated ruse to make herself look like a victim. It seems like the only chance she has now. A victim of what? Government, perhaps. The forces of secularism. But I’m guessing the media. She seems like the sort of person to blame the media for things. Which is fair enough I guess. It was the media after all that told everyone she has taken a vow of allegiance to the United States of America, something she seemed perfectly content not to tell us before becoming our President.

And as – in my own little way – the media, I’d like to point out to the US authorities that by running for the Presidency of another country, she is presumably breaking that oath. Last public figure to do that got assassinated with a drone, I mention in passing.

Speculation is rife of course. But I’m puzzled not so much about what the dark secret is, as by how there can be a false allegation known only to her and the… alleger? alligator? I mean, someone surely can’t be sending her anonymous mail to say “Do what I tell you, or I’m going to make up some shit about your mother.” A false allegation would be hurtful, yes, but a secret false allegation just doesn’t make any sense. Furthermore, it makes no sense to tell us about the existence of it.

The only conclusion I can draw is that, whatever it is, it’s probably true.

The Great Theft Of London

Mayor of London, Boris Johnson poses for a pho...
Seriously. Boris Johnson

Pent-up resentment, a growing social divide, mistrust of the police? At the start, certainly. Riots follow Tory governments like, well like effect follows cause. But now something else has happened. Something new.

Consider the circumstances. The Metropolitan Police, tasked with keeping order in London, are demoralised and ill-prepared. They’ve had a 20% funding cutback even though, as always in a recession, crime rates are soaring. They’ve just lost their Commissioner and Deputy Commissioner in the phone hacking scandal, under a pall of suspected corruption. And the man who is ultimately in charge is Boris Johnson.

I’ll just say that again so it can sink in. Boris Johnson.

What we are seeing is an extraordinary historic opportunity. Social media and fancy phones were not really necessary, it almost crystallised out of the air. A truly vast number of petty thieves, shoplifters, and many who until now have never been tempted by crime had one single thought. If they all did it at once, they could steal… they could steal… They could steal London.

The whole thing. It’ll be gone by Thursday.

Good Morning, Euro. Euro?

Project 365 #125: 050510 Take Note
Will you still be here when I wake?

Sometimes I miss the old lead-times of print publishing, where you’d submit copy to be published hours or even days later. You had to predict, think about the future. So I’m writing this last thing at night, but setting it to be published at 11 a.m. (GMT+1) – seven hours from now, and hopefully when I’ll be getting up.

What I’m wondering is whether, by the time you read this, there will still be a Euro.

How does a currency cease to be? We know of one mode of course. Hyperinflation – when its value evaporates until it’s worthless. However the Euro remains strong – ridiculously strong perhaps, when you consider the condition of the economies that use it. We may in fact be witnessing the previously-inconceivable opposite phenomenon: runaway hypoinflation.

Alas, this doesn’t mean that the Euro notes in your pocket are going to become infinitely valuable. It’s not that opposite. But it means money is getting too expensive. We can’t afford to borrow as much as we need. And that leads to economic collapse just as surely as it becoming valueless would. Unfortunately however, some countries can’t afford it much sooner than others can’t. So the Euro is dying by a process of killing the economies that use it, one by one.

How can we get out of this? We could print the extra Euro notes we need, but that’s illegal. We could drop out off the Eurozone system and print our own currency again, but that’s a drastic extreme that will lose us a lot of friends.

I can think of a simpler way.

Stop checking for forgeries. Don’t accept obvious fakes of course, but quietly turn off the UV lamps and other hi-tech testing devices. If it looks real, take it. There are a hell of a lot of good fake notes floating around the continent, and we could bring them all here, vastly increasing the money supply. At a stroke, we’d have all the cash in circulation we needed. And there’s not a darn thing they could do.