The government is announcing tax raises after the weekend. The imported goods prices are raising FAST .. they went down a little, but now the exchange rate is off the charts once again, nearly back to Novembers rates. Gas has raised by at least 20 króna per liter in a very short period of time. I have been trying to convince myself that I am going to make it, i´m doing a great job, and always cheering my self on to do good things no matter how fast or slow they happen, but all I keep seeing is more trouble on the horizon. I knew a couple of months ago that this would be rough, and I have been trying to prepare myself for it, but it looks like i´m going to be in much greater trouble than I ever thought I would. I was trying to make things so that I would not have to buy much in general during the month and not have to go anywhere in particular, just try to make it.

I have not had such heavy worry in my gut for a while now, but after thinking and reading the news and talking to people I just keep getting a bigger and bigger knot in my gut. Tax raises ..
How on earth is that going to make things any better? There is nothing being done for the families, except the policy rate reduction, and well ... that just does not help everyone. They said that they would focus on increasing taxes on those who have more, and spare the ones who have little. How on earth are they going to do that? Raise the wages taxes for those who earn more than X amount a month, and then just raise it a little on those who already have minimum wages which do not cover anything, and then add some extra tax on BMW BENZ and Dolche & Gabbana? No, I can promise you this:

Not too long ago the food taxes were lowered from 14% to 7%. They will raise that up again to at least 14%, probably more.
The minimum wage tax group and disabled have had a little tax break for a few months, where the amount deducted was lowered and the disability wages were raised as well as the minimum wages. This was done because disabled persons did not get by at all. They will probably erase that tax relief, and raise it by a fraction of percent.

Fuel taxes are crazy, but I am sure they will raise that too.
Luxury goods .. I wonder what they will do to the soap and light bulbs, as it was not hard enough before! Lets not mention batteries .. thats an expensive item.

I have done nothing wrong, except being born here and done my best in having a life. When I look at children I find myself thinking .. I wish I could be this young again, no worries about anything and life is grand. But I remind myself that the children are the ones who are going to continue to pay for this. How can a thing like this happen? This is not only about global crisis, we have other crisis´s here that are not directly intertwined with the global crisis. As most of you know the wealthy persons here were not under any control or supervision, things were crazy over here. But still, I have to admit, I do feel for those who have lost enormous amounts of money and countless assets, it must be heartbreaking to only have 200 billion króna turn over, and it must be difficult to absolutely HAVE to cut back on private jet trips.

There is nothing being done for me and the other Icelanders out there in the same position, with no job, and nothing to lean on. They are raising taxes which will only return the society increased problems of the companies, increased personal problems, reduced purchase power, more unemployment, and so forth .. And the unemployment fund has around 5-6 months more to go before its empty. Difficult for those foreigners who are running away from their countries to collect unemployment benefits here because they get more here than at home, and then have to go back to collect the unemployment benefits from their home country. I´m glad I am not forced to move from one country in hopes of more money. I just have no money, but at least I have a chair to sit on, and I am starting my vegetable garden even though I will probably not be able to put down potatoes because of the price of them.

Since I´m on this route .. the vegetable garden.
I got myself some seeds, which I am about to plant hopefully sooner than later. I have a couple of seeds of broccoli, lettuce, cabbage, carrots, cauliflower, some 5 types of herbs and I have in the field already rhubarb and wild strawberries. I am very glad that I have the last two things, since strawberries are very sweet, and rhubarb makes the best jam as long as one has a good recipe for it. I am pretty sure that I can forget the potatoes, the growth season here is not that long, and I doubt I will be able to buy any for this month or even next to plant. I pretty much eat every single one I can buy. It is quite amazing that the stores now take the old potatoes and sell them at the same price as the new, but with a new name "planting potatoes". Fancy name, better price tag, the store continues to make some money off old potatoes. 

Aint life just grand, I can not wait to hear how much the tax raises will be.

Anyways, I got distracted because of worries from the translations, I need to continue, and then go for a walk in this heat.
I will never forget how much emphasis it has always been on helping the families .. helping the families. Nothing is being done while everything burns up, while the government argues over the EU application and continues to smother all other discussions. There is no help available, and the worst is that the Icelandic family aid is about to go bankrupt as well. So ..


I need to think about something else than this for a moment. 

Comments (9)Add Comment
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written by Jon, May 13, 2009
On the NewsFrettir site, I suggest you add a "Personal Blog" tab after "About Me". Otherwise the links to this blog are too hidden...
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written by kevin oconnor, May 13, 2009
This is when the real crisis hits it all depends on the total bill per head for Icelanders as you were it seems a already highly taxed country I dont see how the government their can hope to get out off it by just increasing taxes the investigations into those banks must commence at full speed to return the max amount of cash to Iceland via sale of assets which of course due to the present synchronised global recession tending to a -10% depression is difficult to get best value, thats the definition of depression by economists, Then there is the fishing industry who gets all the money from that ? everybody or just 5% of the Icelandic population,In a sense Iceland faces the equivalent of a war in a financial sense that being the case then the normal capitalist property rules of I have 5 million euros and you have none tough must be suspended and seen as you are all collectively responsible for the debts failures of you banks then all the assets must be also your collective property also either that or default on the debts, the indexed loans for houses flats etc are such a rigged system anyway what a gift to capital from the wage slave why were not wages indexed too, its called working for the company store. Tax on Food 14% thats well hard does that include bread tomatoes butter etc basics, I am mean caviar,chocolate etc ok but basics!!!
I am not too sure what the situation on that here in Ireland is but please Anya do not blog such things again for all you know our Minister of Finance could be reading your blog and I dont want you putting ideas into his head !!!


anya

I have another little job for you beside the dictionary also I want to get a DVD of that movie Dreamland with englander subtitles of course !! I already have the book its a good read.
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written by kevin oconnor, May 13, 2009
Aint life just grand are not an Irish person Anya your english is well good
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written by G.B., May 14, 2009
Hi Anya,

You might want to go ahead and try a few potatoes anyway. Here in the extreme northern U.S. we only have about a 90 day growing season, and we can still get potatoes. Sometimes I sneak them in a few weeks early because the frost usually doesn't hurt them if they haven't sprouted out of ground yet.

Also, turnips and kale are good for short season and they make good healthy soup.

Good luck and hang in there. The sunshine should be helping you feel better! smilies/wink.gif
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written by from eurussia, May 14, 2009
For planting potatoes, people have used the old ones that have grown sprouts in the cellar - they are split into as many pieces as there are sprouts. Also, the really small ones from autumn's crop are separated in sorting and kept for planting.

I looked at dairy products price list and it seems there are subsidies, otherwise I cannot explain how the prices can be so low. Using exchange rate 150 ISK per EUR, they look similar to the ones I see in local foodmarkets, and I guess the falling krona would make the prices even cheaper in EUR. With prices like these, people will have to manage even when earning 300-800 EUR per month (as is the case around here).
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300 euro and the dead's chest
written by Alexander E., May 14, 2009
300 euro?
In Iceland?
Per months?
You are kidding, ... from eurussia, aren't you?

2 kevin oconnor
Sorry for getting into you business - "beside the dictionary" but have you checked
http://www.ordabok.is/english.asp ?
Anya
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written by Anya, May 15, 2009
800 eur is closer to minimum wages, no one makes 300 euro from a full time job, and the unemployment benefits for those who qualify for that vary, calculated from various matters, one person I know does not get anything close to minimum wages as unemployment benefits.

The welfare financial support is at most 100.000 per month, and not very easy to get let me tell you. Problem is that it is very difficult to find an apartment for less than 100.000 per month in rent.

Alexander: Kevin wants the physical dictionary, he found some online dictionaries.
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Dairy prices are low.
written by Peter, May 16, 2009
I noticed how cheap the cheese seems to be, I assume they are locally made and not imported?
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written by NewsFrettir, May 16, 2009
Yes, all dairy products are made here. We do import some, but I do not know anyone who buys imported.

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