Tax Reform Discussion

Pandoras Twist

As mentioned in the other thread, I think the forum could be a good source of discussion on tax policy.

Reform wise I would bring in a property tax. The OECD said it is the least harmful tax to economic growth and as land and property is immovable, there isn't the risk of capital leaving the country.

I would also put a higher rate of VAT on fast food. It might be a bit complicated to administer, but I think it would change attitudes towards fast food and somewhat ease the obesity/heart disease crisis

What would you do?

mozattack

Abolish child benefit but give a credit for those who pay creche fees - incentivise those who work or eliminate child benefit for those who have been unemployed for > 2 years.

VAT can only be increased to a maximum of 25% because there are certain bands within which VAT can only be charged. Disagree on victimising those who eat fast food, healthy food is far too expensive to rather than taxing unhealthy, I would incentivise healthy food instead.

Disagree on property tax, is it too subjective and not fair on the thousands who paid stamp duty. Also this will again not be levied on those who don't work meaning the middle income will bear the brunt once again.

Mr. Incognito

Seeing as the State owned banks are the largest property holders in the state any property tax would ultimately just be circular.

I would raise the corporate veil on developers who were able to launch phoenix companies and were in the minority who ran up such huge losses that NAMA and the state has absorbed and go after their private assets with the exception of the family home. The modern equivalent of the King seizing lands due to treason.

Tax policy is very very tricky but what i would like to see change is the Revenue costing their proposals properly. What comes to mind is the increase in the health Levy not being taken into account when forecasting the PAYE intake. it was real crayon stuff.

What we need is a government that has the balls to cut expenditure rather than increase taxes. Half the middle management in the HSE needs to go. Civil servants need to realise that they are in a public service job and that they need to give back to the state instead of taking. This means realistic working hours and practices and modernisation. There should also be a mechanism to fire civil servants who are not productive.

In the private sector we need to stop the hemmorage of young talented people. This means jobs. Not this mantra of "training". I mean a 50 week FAS Fetac course is a joke in the real world and is a waste of state resources.

Tax and policy should be set up to encourage business start up, especially in the renewable energy sources. The greens in government actually made a good start on this. We need a proper overall objectives and then tax and public sector reform should be based around that.

We need to be an Irish switzerland- pick a few industries and do them very very well. technology and programming can be one of those areas for example.

I'm also sick of commentators that compare the corporate tax rate to the size of companies profits. These companies provide huge employment and PAYE into the state and it's Ireland's own greed that pushed the Dells of this world out to Poland.

Pandoras Twist

There definitely needs to be further tax incentives put in place for green energy companies. It is a pity the greens lost out on that respect, because I think they had the necessary technical knowledge. It could do a lot of damage if such a new sector isn't treated exactly right.

I agree that corporation can't be touched either. It's one of the few things keeping the economy afloat. It's hard enough trying to encourage investment into a country with a dysfunctional financial system, trying to do it at higher rates of tax will prove impossible.

Mr. Incognito

Pandoras Twist wrote: »

There definitely needs to be further tax incentives put in place for green energy companies. It is a pity the greens lost out on that respect, because I think they had the necessary technical knowledge. It could do a lot of damage if such a new sector isn't treated exactly right.

I agree that corporation can't be touched either. It's one of the few things keeping the economy afloat. It's hard enough trying to encourage investment into a country with a dysfunctional financial system, trying to do it at higher rates of tax will prove impossible.

The Greens had ZERO technical knowledge. The only forte they had into tax i.e the cycle to work scheme was a disaster- instead of taking it out of employers PRSI which would have encouraged an uptake the employer had to pay for the bike out of his own pocket and it could be given free of PAYE as a BIK. I mean that was just stupid. If there was no employee-employer relationship the gift would not be taxed under small gift exemption.

Cookie_Monster

Flat income tax rate of say 15%, no credits.

Restructure tax and PRSI for self employed to actually encourage it rathe than punish.

Propert tax based on sq m times a specific factor to account for urban/ rural, a density per sq km for example.

Water tax (rates) but specifically ring fenced for water infrastructure and treatment.