Madam, – In criticising the proposal to introduce a tax on text messages, the Irish Cellular Industry Association argues that: “there is no logical reason why an additional tax should be imposed on text messages as opposed to any other product like cups of tea or coffee.”
It is clear that the State finances have been mismanaged to such an extent that the tax net needs to be considerably widened to obtain more revenue. There are no painless solutions. In these circumstances, the Minister of Finance should look first at introducing small tax increases on products that are heavily consumed across the entire population, yet largely non-essential. Text messages are in that category – as, indeed, are tea and coffee. In fact, a “caffeine tax” might be one of the more reasonable new revenue suggestions.
Yearly tea consumption in Ireland is estimated to be 1.5 kg per capita. On that basis, an additional levy of 0.5 cent per gram of tea sold (i.e. one cent per two-gram tea bag) would yield approximately €31.5 million a year.
The old saying, “Look after the pennies and the pounds will look after themselves”, may well apply. – Yours, etc,
Madam, – The proposed “text tax” is a great idea. If ever the country needed a tax that could generate up to €250,000 a day, it’s now.
Of course the mobile phone companies protest that they would be double-taxed. I have no sympathy for them; Vodafone founder Sir Chris Gent once described texts as “the closest thing to pure profit ever invented”.
Why? Because once an operator has a functioning network, texts cost them nothing to send within their own network and cross-network rates are charged at an arbitrary rate because, again, they cost practically nothing to bounce from one end of the world to the other.
What scares them is that, to avoid paying even an extra €1 or €2 extra a month, users would switch to the cheapest provider, prompting a price war.And the consumer would win. – Yours, etc,
Madam, – When talk turns to raising taxes, inevitably the “old reliables” are mentioned. The theory is that there are people who will smoke, regardless of the cost, there are those who will drink, regardless of cost, and those who will continue to drive, regardless of the price of petrol. Therefore tax rises on these items will always raise some money.
There are also now very many people who are so addicted to mobile phones that they will continue to talk, text, and buy the latest model (not to mention silly ring-tones) regardless of price. So why not tax them? Apart from raising revenue, such a measure might reduce the number of people who shout into phones on buses, in restaurants, in shops, in cars and on the street. Therefore it could be a “no lose” situation. – Yours, etc,
Madam, – The Taoiseach has said that everything will be on the table when he meets the Opposition, the Independents and social partners to discuss the forthcoming emergency budget.
May I presume to suggest to Brian Cowen that the first item on any agenda should be the resignation of the Government and the handing over of what is left of our economy to be dealt with by the Opposition? This would immediately save the usual ludicrous amounts of money being spent on an election which the Government parties know they cannot win. The Government should do the honourable thing and get out now before the ECB moves in.
Of course the only snag is that the Opposition might refuse its offer and insist that Fianna Fáil carry on like the good soldiers of Destiny that they are. – Yours, etc,
Madam, – Average Citizen borrows money from the bank to buy a home. Average Citizen can’t pay back the loan. Outcome: Average Citizen loses home.
Wealthy Citizen borrows money to invest in housing developments. Wealthy Citizen doesn’t pay back loan. Outcome; Average Citizen pays it back on his behalf.
Equitable? Fair distribution of pain? – Yours, etc,
Madam, – Instead of nationalising banks the Government would be better off spending taxpayers’ money on nationalising the Guinness Brewery. The price of a pint should then be reduced to €2.50, which would stimulate tourism and probably save a lot of rural pubs. This would send a signal that the Irish Government is on the side of the working man and raise the morale of the country in these dark times. It would show the world that the Irish still had a darling plan to sort out the economy: we’ll drink our way out of it, and prove that a pint of plain is still your only man. – Yours, etc,
Madam, – A report on the front page of your edition of March 7th states that the Department of Social and Family Affairs is considering “abolishing the entitlement to two social welfare payments at the same time. e.g. lone parent’s allowance, the half-rate carer’s allowance and widow/widower’s payments”.
Perhaps the Government should give leadership by opting for one pension per person to be paid at retirement age. – Yours, etc,