Rate Expectations

In the Book Great Expectations by Charles Dickens we saw Pip help out an escaped convict, one who had done some wrong, the convict later becomes an anonymous benefactor of Pip’s helping him lead the life of a gentleman and Pip becomes totally removed from the old life of poverty he lead, only to one day find out who his invisible helper was, it shakes him to the core.

There is something in this story that hit me today hearing about the Fed rate cut to a base of 1% and current public sentiment towards the market. The market is like the convict who had done something wrong in the past and who later is the benefactor. It is easy to look at the mistakes made by the finance industry, and alarmingly easy to funnel all wrongs towards it, …

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An argument for and against property tax in Ireland

Today’s article will be unpopular with almost everybody, myself included, however, it is not intended to scare or cause frustration, merely it is intended to give a rational answer to an ongoing problem that we have had in Ireland. The problem is that of fair and sensible taxation on property and how to go about it, at the moment property tax is a front-loaded scheme referred to as ‘stamp duty’ and the system for charging is as follows.

1. First time buyers pay no tax irrespective of what they buy as long as it is for their primary residence. 2. Second time buyers pay stamp duty (property tax) if they buy an existing property, however, if they buy a ‘newly built’ property then they are exempt. 3. Investors pay stamp duty (property tax) on all property transactions. 4. Commercial buyers pay stamp duty (property tax) on everything costing …

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