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Barry Cronin/Photocall Ireland

Noonan defends PRSI increases as 'best value taxpayers can get'

Michael Noonan says paying €5.08 extra a week for a guaranteed pension is “the best value anyone will ever get”.

MICHAEL NOONAN has defended his decision in PRSI to raise the minimum PRSI contributions paid by self-employed workers, and scrap a tax-free allowance for employees, in Budget 2013.

Measures announced yesterday will see employees whose gross weekly pay is above €352 per week – which includes almost all full-time workers – have to pay an extra €5.08 per week in PRSI, as they can no longer have some of their income declared PRSI-free.

The minimum annual PRSI contribution for self-employed workers, meanwhile, is to be increased from €253 to €500 – the equivalent of €4.75 per week.

PRSI income is ringfenced and put into the Social Insurance Fund, which is used to pay for welfare payments such as jobseeker’s allowance and child benefit.

“People on high incomes pay in more [in PRSI] than they’ll ever get out” in terms of social benefits, Noonan explained on RTÉ’s Today with Pat Kenny.

“Somebody on law pay – somebody on €25,000 – an extra €5 a week [from them], to replenish the social welfare fund, will guarantee their benefits but in particular their contributory pension,” he said.

“It’s about the best value for €5 that anyone can ever get,” he said.

The increase for the self-employed had similar benefits, he said.

€500 a year, to guarantee you a contributory pension, is the best value anyone will ever get in this world.

Noonan said that the Social Insurance Fund, which is currently running at a deficit because of the lower-than-expected number of people in work and the higher numbers claiming social welfare, needed to be replenished.

“You can’t really swap [PRSI increases] for other tax measures, because other tax measures don’t go into the Social Insurance Fund,” he said.

Public expenditure minister Brendan Howlin added that while the abolition of the PRSI-free allowance for employees was one way of getting the “significant replenishment” that the fund needed, other measures had also been introduced.

“Unearned income from rental, consultants fees, private income fees, will be taken into the net of PRSI,” Howlin said.

Income from those sources was previously not liable for PRSI.

Read: PSRI changes will hit employees by €264.16 per year

In full: TheJournal.ie‘s coverage of Budget 2013

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41 Comments
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    Mute T MacUaidh
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    Dec 6th 2012, 12:53 PM

    His own minister’s pension, worth €2,000,000 comes free. Now that’s good value. (For him, if not for the taxpayer)

    142
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    Mute Jim Flavin
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    Dec 6th 2012, 3:54 PM

    Too late now – damage done . He was ”democrtacally ” elected . name calling no use now – something else needed .

    21
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    Mute rusty9
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    Dec 7th 2012, 1:36 AM

    Noonan no more cares about the taxpayers than the man on the moon. Quinn offered 2.8 billion ot the State and Noonan and Co. threw it in their face in favour of a strategy that will cost us billions. He has no problem squandering billion s of euros while at the same time allowing the bankers to fleece us and hit the most vulnerable in society with the cruelest cuts.

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    Mute Strongbow62
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    Dec 7th 2012, 7:09 AM

    . The big boys in Europe want their cash back. It’s pay up time. So they’ve sent a few hoods over to tell Enda and Noonan to cough up or else. So since the boys don’t have the balls to upset some of the bigger bullies in the schoolyard they’ve picked on some of the smaller meeker kids. Stole their lunch money and sambos to look good with the bullies . If you have no power you are f@@ked. We need to give both a good kick in the arse and send them back to Europe crying.

    4
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    Mute Peter Lawless
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    Dec 6th 2012, 12:56 PM

    What an ignorant, condescending man! Trying to make an issue for those on the breadline trivial. Truly a horrible little man

    109
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    Mute Dermot Purcell
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    Dec 6th 2012, 4:54 PM

    Peter they are pissing down our backs and telling us that it is raining ,this is no democracy we live in ,people beware of all politions

    18
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    Mute Spoon Man
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    Dec 6th 2012, 12:52 PM

    when did Tax suddenly become Value? value to who?

    83
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    Mute Terry Turner
    Favourite Terry Turner
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    Dec 6th 2012, 12:57 PM

    This prsi increase is wrong on a number of fronts.
    Everyone earning over 346 gets hit by the same amount. 127 per year does not mean much for someone on 50k or more pa. it is a lot for someone on 20k pa
    It will penalise people on low pay at minimum wage who get a few hours extra pay who will then be liable for prsi. This has been the case for some time. It is worse now.

    Linking the payment to pensions is pure spin.

    73
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    Mute Derek Boyle
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    Dec 6th 2012, 12:51 PM

    Noonan has no clue what he’s doing, he’s like some bumbling moron better suited to a episode of grumpy old men. All this prsi increase will cause is keeping more unemployed families in the welfare trap. Man has not got a clue.

    65
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    Mute Kieran Ross
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    Dec 6th 2012, 12:47 PM

    But we need money now, not when we’re 65+

    64
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    Mute Mark Prendergast
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    Dec 6th 2012, 1:24 PM

    Kieron
    If you need money now you either earn it or leave. Try Northern Ireland where benefits are about half ours.

    16
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    Mute Kieran Ross
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    Dec 6th 2012, 2:00 PM

    Or alternately, the government could leave the PRSI unchanged which would leave more money in Irish citizens pockets who could buy Irish goods/services which creates jobs. Leaving the country as you suggest is detrimental to Ireland.

    60
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    Mute toorkeel
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    Dec 6th 2012, 4:03 PM

    …what about the lifetime dole claimants, why weren’t they hammered in the budget…you know the ones….the ones who have contributed anything but claim every “entitlement” known to man. If I were Noonan I would have gone through them for a shortcut, not the ordinary worker. I would have also given some extra assistance to the recently unemployed. They are far more likely to get working unlike the lifer leeches with zero work ethic and ambition…

    59
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    Mute Paul Whelan
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    Dec 6th 2012, 12:50 PM

    Paying more for the same thing is value?

    55
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    Mute Seán Ó Briain
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    Dec 6th 2012, 12:57 PM

    Paying more for less. Public services are being cut across the state.

    56
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    Mute Siobhan O'Mahony
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    Dec 6th 2012, 12:53 PM

    He’s very thoughtful isn’t he!!!! Muppet!!

    51
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    Mute peepingass
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    Dec 6th 2012, 3:31 PM

    Not a Muppet- a Stuffed Puppet of a foreign puppeteer!

    13
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    Mute Kerry Blake
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    Dec 6th 2012, 1:36 PM

    More empty words from Noonan. The man who yesterday claimed the budget was good news for everyone. He must of being referring to a specific circle, possibly golden when he said that.

    50
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    Mute peepingass
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    Dec 6th 2012, 3:32 PM

    THis is his last time in the Dáil, have no doubt about that!

    19
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    Mute Keith Jack
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    Dec 6th 2012, 12:47 PM

    Then it’s ?10 extra per week then ?20 and you know where that goes.

    43
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    Mute John Finn
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    Dec 6th 2012, 12:48 PM

    Bullsh!t

    35
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    Mute Shayno ZO
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    Dec 6th 2012, 1:58 PM

    I expected this from FG but for Labour to survive they will need to clear out the top table.
    The young guns should have a good think on that or be prepared to be decimated.

    34
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    Mute Rory Conway
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    Dec 6th 2012, 3:18 PM

    “Decimation ” is only 10%. I believe you are underestimating the sitution.

    6
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    Mute Shayno ZO
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    Dec 6th 2012, 3:34 PM

    You are refering to mathematical terms. I meant as in;
    decimated??past participle, past tense of?dec?i?mate?(Verb)

    VerbKill, destroy, or remove a large percentage of.Drastically reduce the strength or effectiveness of (something): “plant viruses that can decimate yields”.

    10
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    Mute Cal1 Mooney
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    Dec 6th 2012, 3:36 PM

    Any Labour TDs vote to support this budget, deserve to lose their seats at the next election. Any who refuse to support the budget, will probably be saved.
    Labour ran on a manifesto that swore to the people who voted for them, that cutting Childrens allowance was a red-line item for them. If they break their word, they should be forced to call a by-election for every seat held by Labour and run again on a platform of honesty.

    26
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    Mute censored
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    Dec 6th 2012, 3:39 PM

    Yeah Shayno, 10% is a “large percentage”. That’s what decimation means.

    http://en.wikipedia.org/wiki/Decimation

    We’re talking more annihilation.

    3
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    Mute Martin Lawless
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    Dec 6th 2012, 1:43 PM

    Noonan is a baboon

    25
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    Mute peepingass
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    Dec 6th 2012, 3:33 PM

    A baboon is a respected and self-respecting, truthful and non-treacherous animal! Why insult poor baboons?

    24
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    Mute censored
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    Dec 6th 2012, 3:33 PM

    The only “unearned income” in this country is the income going into Noonan and Howling’s trouser pockets.

    25
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    Mute
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    Dec 6th 2012, 2:54 PM

    Michael Noonans favourite joke:

    Two bee keepers were talking.

    “How many bees do you have?” said the first bee keeper.

    “I have ten thousand bees”

    “How many hives do you have?” said the first bee keeper.

    “I have ten hives” came the reply.”How many bees do you have? responded the second keeper to the first

    “I have four and a half million bees”

    “Thats a lot of bees!” said the second bee keeper. “How many hives do you have?”

    “I have only one hive”

    “Four and a half million bees in just one hive!” exclaimed the second bee keeper.

    “Fcuk ‘em. They’re only bees.”

    19
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    Mute ADEBAYO FLYNN
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    Dec 6th 2012, 3:23 PM

    Noonan is a spoofer.

    14
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    Mute Anthony Bartley
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    Dec 6th 2012, 3:28 PM

    Treason

    12
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    Mute peepingass
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    Dec 6th 2012, 3:35 PM

    Just politicians being themselves- nothing unusual!

    10
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    Mute Enid O'Dowd
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    Dec 6th 2012, 5:21 PM

    Noonan’s comments on the increased minimum PRSI contribution for the self employed are a little misleading. he says its a great bargain. The self employed pay 4% of income PRSI and basically only get the old age pension for it. Some self employed have very low income, especially at this time.

    Say their income is €5,000. 4% of that is €200. But they have to pay €500 which is 10% of their income.

    Contrast that with an employed worker earning under €352 pw (€18,304 pa) – he/she does not pay PRSI at all but get a class A credit on his/her insurance record qualifying for all benefits. In fact if you earn under this limit in two or more part-time jobs and thus have a good income you still pay NIL PRSI.

    I don’t think Noonan understands this.

    11
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    Mute Brendan McCaffrey
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    Dec 6th 2012, 4:38 PM

    How come theres never a high earners bankers and ministers pension tax. It always on the lesser well off and they make make some flowery Bs statement justifying their action.

    8
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    Mute Shayno ZO
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    Dec 6th 2012, 1:53 PM

    They don’t make em like they used to;
    http://irishlabour.com/?p=283

    5
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    Mute Niall O Brolchain
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    Dec 6th 2012, 6:21 PM

    I am not at all impressed with this budget. People have asked me what I would do differently. Simple, along with cutbacks (which are necessary) encourage enterprise.
    Some saw the efforts of Lemass and Whitaker as gambles but surely it is once again time for people to start taking risks and time for the Government to encourage us to do so.
    We have huge opportunities in renewable energy, agriculture and eCommerce, yet the Government has increased the minimum level of PRSI. This will hit start-up enterprises hardest.

    4
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    Mute John
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    Dec 6th 2012, 5:51 PM

    Roll on GE

    4
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    Mute Eddie Mahoney
    Favourite Eddie Mahoney
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    Dec 7th 2012, 10:53 AM

    what can we expect from a government which contains3 failed ex party leaders(rabbitte,quinn and noonan)2failed wanna-be leaders(howlin and richard bruton) and one thatwas sacked or had to resign(not sure which) for leeking thehulk hogan.

    2
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    Mute Darragh Mac Domhnaill
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    Dec 7th 2012, 11:10 AM

    What a load of bull. Everyone knows that 6 cans of Dutch Gold is the best value for €5 that anyone can ever get! Sheesh!!

    1
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    Mute Eddie Mahoney
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    Dec 7th 2012, 10:35 AM

    even with one and a half finance ministers they still can’t get it right.

    1
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