NEW RELIEF MEASURES IN BUDGET TO CUT WATER BILLS BY UP TO €100 - Householders across the board will receive reductions in their water bills, as concern heightens within the Coalition over the prospect of a public backlash to the charges. A two-pronged approach agreed by senior ministers will see the introduction of new tax relief measures and financial subsidies in tomorrow's Budget, the Irish Independent reveals. The Coalition plans to provide relief through both the tax and social welfare systems in a move that is intended to cover every household in the country. The proposals, which were signed off by the government's Economic Management Council (EMC), will see householders receive a tax refund worth up to €100 from their water charges bill. The package of relief from water charges has been improved, following intensifying opposition to the introduction of water charges. Taxpayers will be able to claim tax relief from their water charges worth up to €100 a year at the lower income tax rate of 20%. The bill for a family of two adults and two children is estimated at €278, meaning tax relief of €55.60. The relief will be capped at €100, which would require a bill of €500. The tax relief will be available to everyone, regardless of income.
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BUDGET 2015: USC CHANGE TO TARGET LOW, MIDDLE EARNERS - The Government is planning to raise the threshold at which the Universal Social Charge (USC) is paid by low and middle income earners, instead of cutting the rate at which the unpopular tax is levied. Senior Coalition sources have said changes to the USC will feature as part of a three-pronged tax package to be unveiled tomorrow by Minister for Finance Michael Noonan, writes the Irish Times. The package will also embrace a cut in the higher rate of income tax to 40% from 41% next year. In addition, the threshold at which people enter the higher rate will rise to €33,800 from €32,800. The tax measures were agreed last week by the Economic Management Council, the powerful Cabinet subcommittee at which Taoiseach Enda Kenny, Tánaiste Joan Burton, Mr Noonan and Minister for Expenditure Brendan Howlin settle the thrust of fiscal policy. Although the Government has been urged to prioritise capital investment in the budget, it will say that the increase in disposable income resulting from the tax measures will provide an appreciable boost to economic growth next year. As the Coalition takes the benefit of rising tax revenue and rising growth, the income tax measures will come in addition to increased expenditure in a number of departments. Contrary to expectation in political circles, however, sources said a three-year tax plan to be unveiled by Mr Noonan in tandem with the budget will not lay out specific rate or band cuts for the years ahead. Instead, it is understood that the plan will detail a list of priorities for reforming the income tax system including major changes to the USC.
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BUFFETT ROLLES OUT THE BERKSHIRE HATHAWAY BRAND - Warren Buffett plans to license the Berkshire Hathaway name to estate agencies in Europe and Asia, in the next phase of a campaign to use his widely respected investment company as a consumer brand, writes the Financial Times. After decades buying into some of the most valuable brands in the world, Berkshire has this year dramatically expanded the use of its own name, rebadging its family of utility companies, US estate agents and a newly acquired car dealership. Marketing consultants and company insiders believe it is sitting on a valuable asset in the Berkshire Hathaway brand, which they say taps into 84-year-old Mr Buffett’s reputation for financial acumen and longevity. “Like Virgin reflects Sir Richard Branson’s rebelliousness and Apple reflects the genius of Steve Jobs, Berkshire Hathaway has brand equity around trust, stability and integrity,” said Oscar Yuan, partner at consultancy Millward Brown Vermeer. The number of US estate agencies using the Berkshire Hathaway HomeServices brand will swell to almost 1,400 by next spring, said Earl Lee, chief executive of HSF Affiliates, a franchising joint venture between Berkshire and Brookfield Asset Management.
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WORKERS' FURY AS TOP BOSSES' PAY SOARS BY 21% - UK bosses’ pay surged by 21% last year despite workers’ salaries struggling to outstrip the country’s 1.5% rate of inflation. According to a report by Income Data Services, the average total earnings for a FTSE 100 executive is now £2.4m, with the increase driven by a sharp rise in share- based pay. The figure for chief executives hit £3.3m with the average basic salary now standing at £832,000, reports the London Independent. The report, covering the year to June, found a 44% increase in long term incentive share awards, and a 12% rise in bonuses. But basic pay saw only a muted 2.5% increase. IDS, an employment information and research business, also found the average value of vested long-term incentive plan (LTIP) share awards for FTSE 100 chief executives was £1,993,500, highlighting how valuable these can be. The research demonstrates the growing disparity between the pay of top bosses and ordinary workers. Since 2000, the average total earnings of FTSE 100 chief executives has increased by a staggering 278%, while full-time employees have risen by just 48%. A FTSE 100 chief executive now earns an average 120 times more than a full-time employee - in 2000, that figure was just 47 times.
