Workers Solidarity Movement

It has been revealed that the changes in tax credits contained in the IMF/ECB four year austerity plan will hit low paid and average paid workers far harder than the those who earn hundreds of thousands.  A worker on 36,000 a year will pay around ten times as much extra tax as a percentage of their income than a banker earning 300,000 will.  In real terms both pay exactly the same, 1860 euro.  The independent think tank TASC has produced a short report which graphically illustrates the deepening of inequality that is contained in that aspect of the four year plan.

It seems incredulous but in percentage terms  someone earning just 16,000 euro a year is facing a tax hike almost twice the size as someone earning 300,000.  And a worker earning 36,400 faces one ten times the size of someone earning 300,000.  

Commenting on the figures, TASC Director Paula Clancy said:“TASC has long argued that the incomes of those at the lower and middle end of the income distribution should be protected – not just on equality grounds, but also for economic reasons. Middle and lower income earners are more likely to spend all or most of their incomes, thus providing much-needed demand in the economy. The proposed income tax changes will hit middle and top earners equally – and, in proportional terms, will hit someone earning the average industrial wage far harder than, for example, a senior banker. This is indefensible on both equality and on economic grounds”, Ms. Clancy said. [Download the PDF of the TASC report]

This TASC report confirms the preliminary analysis by the WSM produced as the four year plan was announced that "all these costs are being dumped on workers, particularly low paid workers, the very sector that gained little or nothing during the boom years."  The richest 1% from whose number the bondholders are drawn are being bailed out by the mass of workers in Ireland while making almost no contribution themselves. [Read more at A radical analysis of the four year plan and call to action]

Ahead of Saturday's massive protest against the plan the WSM warned that "It’s clear that those who have political power – the wealthy elite who control the purse strings of our society – will not give it up easily. If we are to bring about a situation whereby there is a re-balancing of wealth and the huge wealth divide is gotten rid of we have to organise ourselves in every community and in every workplace. We have to discuss and debate with our work colleagues, fellow trade unionists, friends, family and neighbours what way in which we want to re-balance society. "

We went on to argue that "Our biggest weapon if we want to bring about fundamental change is our ability to withdraw our labour. The wealthy elite in whose interest society is currently run do indeed have all the political power. But nothing would function for them without us. They need us to work in their businesses, they need us to keep the wheels of society running by providing a health service, education service etc. And that’s where our power comes in. Imagine a situation where all of us together – public and private sector worker alike – stop working. Imagine the feeling of collective strength that would give us. Equally imagine the message that would deliver to our current rulers. A general strike organised across all workplaces would be a first step towards a re-construction of society in our interests rather than in the interest of a tiny greedy minority." [Read more at ICTU can't be trusted to organise a general strike]

This latest revelation serves to underline the reasons why we need to organise to fight back.  The next step in this process will be the 1% Network protest called for Budget Day, meeting up at the Wolfe Tone statue opposite the Shelbourne at 5.30 to march to the Dail.