The text tax debate
SpunOutters weigh up the sense and centibilty of the proposed tax on texts.
First they target the elderly with the medical card fiasco. Then the public sector with the pension levy. Now the latest idea from our esteemed elected government is to target young people with a new proposed tax on texting.
Green Party Deputy Leader Mary White has put together a proposal that would see a one cent tax on every text message sent. Not content with the fact that the adults of Ireland have to live through this nightmare recession, Ms. White believes that children, yes poor innocent children, many of whom have no idea how to even spell the word recession, should play their part in digging the government out of the huge hole they have discovered in the public finances. Ms. White has been quoted as saying: "It might be no harm if they were aware of a one cent tax on texts - prudent economy at an early age."
Prudent economy!? Maybe if the government had been aware of that from an early age we wouldn't be in the mess we're in now!!
And since child labour is still illegal in this country (for now at least, who knows what the government are planning next?), money for such luxuries as mobile phone credit come from the parents anyway, who, thanks to their dwindling incomes, are more than aware of prudent economics.
All mobile phone calls and text messages are already subject to a 21.5% VAT levy in this country. Why add to that? While one cent might not seem like much now, it will soon add up for the young and less well off who use texting more than any other social group. And there is a reason they rely on this method of communication – it's cheaper!
It is hard to believe that Ms. White has thought this tax through as her initial estimate that it would raise €1.4bn for the Exchequer has been shown to be way off the mark. The real figure, based on the more than eight billion texts sent in Ireland every year would be closer to the region of €81m.
The Green Party say they have been considering this idea since last October’s budget. Almost six months of discussion on this and they still can’t get the figures right? Maybe before we start taxing the innocent youth of Ireland, the government should look a little bit closer to home. How about starting with taxing those who waste six months working on a flawed proposal?
If this were the private sector, Ms. White and her team would no longer have a job. Maybe we should let the youth of Ireland decide. After all if they’re going to be taxed like adults, why not let them vote too?
By: Colette Fahy
Can we really afford to complain?
In this day and age we have scant regard to small change, especially if it is of the copper variety. We stick it in pockets, purses and jars never to be thought of again; leaving it relegated to the world of monetary limbo.
This proposal seems like a positive approach in a negative time and on paper, this levy is fairer than some others applied. So are there any negative aspects?
The Irish Cellular Association does not support the levy; believing it to be double taxation and pointing out that many of their customers are on bundle packages or "free text" services. This begs the question of how it can be applied correctly and fairly. Do we as customers run the gauntlet (yet again!) of paying more than we agreed to?
Personally, I would support this tax. Even without a degree in economics, I can see this could be a way of raising some extra money for the public domain when we are all two steps from losing our Armani shirts.
In the last fifteen years or so, this country has experienced wealth beyond our wildest dreams. Mobile phones have been with us the whole time, holding our hands and encouraging us to spend, spend, spend. The telecommunications giants have literally made their millions off the backs of our population so I’m certainly not averse to seeing them put a little more work in, even though it would essentially be coming from the public. Rough justice is something these companies are probably not familiar with. Yet the public have had to eat it in truckloads.
Last month the government applied a pension levy, whether the public wanted it or not. The money was taken at the source and, strikes or no strikes; this is simply the law of the land for now.
So if the government can propose this "tax on texts" in a fair and practical way, I don’t see how we can complain. On the grand scale of things, it is by no means a big deal and not for the first time, people are complaining for complaining sake. With unemployment going through the roof and a palpable air of panic in the air, surely no one can begrudge 1 cent if it helps. Sure you wouldn’t even bend over on the street to pick it up.
By: Michelle Clare Culbert
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