Tax increase on wages

femur61

I don't want to start an arguement but am curious to increases in tax on take home pay. I don't want to initiate aguement between the differents factions in society. I am just curious (settle an arguement with my husband as well).

amcalester

What?

changes

femur61 wrote: »

I don't want to start an arguement but am curious to increases in tax on take home pay. I don't want to initiate aguement between the differents factions in society. I am just curious (settle an arguement with my husband as well).

You'll need to elaborate a little.














If its the massive increase on PRSI once your taxable income goes above €500 a week then yes its a scandal. :mad:

AlekSmart

Perhaps Femur61 and her old-man are at odds with the principle of Taxation in general ?

With a name like that she could well be a Nurse (?) and perhaps her spouse is a member of a different classification,not paying the dreaded levy ?

I may be wrong but perhaps she`s seeking to have the Tax-Base broadened with lots more people paying a level of taxation.

Currently we have something like 50% (? :eek:?) of those employed paying NO direct income-tax which somewhat skews the pitch for everybody else.

In my line of business I have for decades now have been subjected to regular tirades regarding just how supercalifragalistic Public Transport was/is in other countries...

London,Paris,Berlin,Munich,Madrid,Rome Darlington.....every one a winner and far far far superior to our native attempt......which I readily admit to be true.

BUT...But...but...bu..b.....when I would ask if the local`s in these places paid,for example,Local Sales Taxes,Domestic Household Taxes,Water Rates,Refuse Collection Charges or were discouraged from using Private Motoring for short social related journeys,the eyes would glaze over and the shutters descend...:rolleyes:

The reality is that the rest of Europe has understood the basics for a lot longer than ourselves.

The Greater Good prevaileth over there and in that regard the average French.Italian,German or Swiss taxpayer had little difficulty paying a true rate of 45% when we,the savvy Irish were laughing all the way to Fuengirola having paid a marginal 20% or perhaps even Nuttin !

Now we face an ever more stark future,with the reality being we haven`t a button...not an arse in our breeches,but still imbued with the strong belief that we are "entitled" to stuff by some divine WB Yeatsian right......Has anybody got a old Air Raid shelter they no longer use ???

femur61

My husband says there has been little increase in taxation (nice planet he is living on ). Heard me on the phone to my brother in the UK who left in the 80's saying to him taxes here were scandously high. So I just want some hard facts.

Cookie_Monster

femur61 wrote: »

My husband says there has been little increase in taxation (nice planet he is living on ). Heard me on the phone to my brother in the UK who left in the 80's saying to him taxes here were scandously high. So I just want some hard facts.

Taxes here are very low overall.
Tax increases here in the last 2 years have been small also in context of how ****ed the finances are.
Next budget will probably be a bigger hit, unfortunately but being realistic it is needed. The bands need to be lowered downward to include more people and the 41% rate needs to be raised to 45% or so IMO

amacca

there's also the issue of our indirect taxes

presumably people would agree those are very high here?

AlekSmart

It`s probably more to do with our national phsyche,which is one of a somewhat feckless "eat,drink and make merry for tomorrow may be wet and cold" attitude.

It may seem a hackneyed comparison but we keep having to return to just how enthusiastically we average Irish folks embraced credit in contrast to an average German perhaps.

I remember being genuinely surprised at finding businnesses in Germany,mid 1990`s,who did not accept Credit Cards and worse still Germans who did not possess any !!!.

In my mind I felt this was antedeluvian behaviour and would result in Germany falling behind in the area of trade and finance.....:rolleyes:

I was not totally correct in that assumption........:o

Cookie_Monster

AlekSmart wrote: »

I remember being genuinely surprised at finding businnesses in Germany,mid 1990`s,who did not accept Credit Cards and worse still Germans who did not possess any !!!.

same thing today. My GF's uncle lives in Frankfurt. He was saying last time he was over that many of small town restaurants and shops (there) don't take credit cards anymore.

zielarz

Tax on wages are already ridiculously high and I'm not talking about the 20 and 41 bands + levy. It's much higher than that because most people don't count the 10,75% paid by employer. If you take this into account you get the real tax bands of 28,6% and 47,7% + levies. Then you go to the shop and the government is taxing your money again at 21% VAT rate or in the worst case you go to the petrol station and pay extra 70% tax on it. Only insane person will claim that these taxes are low.

wiseguy

Cookie_Monster wrote: »

same thing today. My GF's uncle lives in Frankfurt. He was saying last time he was over that many of small town restaurants and shops (there) don't take credit cards anymore.

Maybe related, but I noticed that shops,restaurants and bars in some southern European countries don't like accepting credit cards.
Something to do with making it easier for owners to evade taxes and for waiters to get a tip

Scarab80

feelingstressed wrote: »

And if you earn just below the higher rate cut-off you can end up taking home more then somebody who earns just a small amount more. Hardly fair

No you don't, the higher rate only applies to portion of your income over that level. So if you earn 36,500 and the cut off rate is 36,400 you pay 20% on 36,400 and 41% on 100.

highgiant1985

Scarab80 wrote: »

No you don't, the higher rate only applies to portion of your income over that level. So if you earn 36,500 and the cut off rate is 36,400 you pay 20% on 36,400 and 41% on 100.

i think he may have meant that comment in relation to PRSI rather than tax. As depending on how much you earn if its slightly higher you'd be pushed into a higher prsi class and could end up earning less nett pay than someone earning slightly less than you gross pay.

bcmf

Direct taxes here are quite low. Speaking to a friend who lived in France where they have a higher direct tax regime BUT (according to him) have a better and earlier retirement then here.
indirect taxes are the one's killing us.
As regards to the Direct Tax net (levies etc etc) from a 'friend' who recently left the Revenue Commisioners the 'feeling' is that come Decembers budget no one will be overlooked regardless of what they earn in regards to paying Tax.

Godge

zielarz wrote: »

Tax on wages are already ridiculously high and I'm not talking about the 20 and 41 bands + levy. It's much higher than that because most people don't count the 10,75% paid by employer. If you take this into account you get the real tax bands of 28,6% and 47,7% + levies. Then you go to the shop and the government is taxing your money again at 21% VAT rate or in the worst case you go to the petrol station and pay extra 70% tax on it. Only insane person will claim that these taxes are low.

But 40% of employees don't pay any tax.

What you are saying therefore is that taxes are high on those who pay.

The logical solution to your point is to lower taxes on those already paying tax (cut the 20 and 41 bands) but make the lower-paid pay even more (reduce tax credits).

No politician would suggest this now, similar to PD policy when that party was at its height.

Count Dooku

Godge wrote: »

But 40% of employees don't pay any tax.

They pay enough through indirect taxes, such as VAT or petrol levy, and high prices in shops, which will be later repaid as taxes on property rents later
It doesn't make any sense for low paid workers continue to subsidize inefficiencies in public sector and keep living standards TD's and other public servants without getting anything back
Taxes on low paid workers will bring most of them into black economy or dole, but will not increase much tax take

zielarz

Godge wrote: »

But 40% of employees don't pay any tax.

They do. Even if you're on minimum wage your employer pays 10,75% of your gross salary to the greedy government.

Godge wrote: »

What you are saying therefore is that taxes are high on those who pay.

The logical solution to your point is to lower taxes on those already paying tax (cut the 20 and 41 bands) but make the lower-paid pay even more (reduce tax credits).

The logical solution is to lower taxes and cut spending but it won't happen in near future.