Tax Breaks To Attract High Earners

SafeSurfer

A Special Assignee Relief Programme contained in the finance bill allows highly paid executives of multinational and indigenous companies to have a significant proportion of their salaries exempt from tax. A tax relief worth €5000 is also available to them to send their children to private schools.

In my opinion large multinational companies that are effectively subsidised by our low corporation tax rate should use some of their huge profits to pay for the staff they need instead of lobbying for a further subsidy from the Irish taxpayer.

The Finance Bill also included 21 new measures aimed at supporting the international financial services industry.


http://www.irishtimes.com/newspaper/frontpage/2012/0208/1224311465114.htm


lhttp://www.rte.ie/news/2012/0208/budget.html

Sergeant

Excellent idea. As a small export and trade dependent economy on the periphery of Europe we need to be able to attract businesses to Ireland, and make it an attractive place to do business. Giving a tax break such as this to executives will help to make the country seem like a good place to do create either a European or indeed world headquarters. We have an effective higher tax rate of ~51% when PRSI, USC etc is included, and this is quite high compared to other small economies who rely on FDI.

jester77

Nice, can ex-pats take advantage of this?

Edit: Yes they can, for up to 3 years

SafeSurfer

Sergeant wrote: »

Excellent idea. As a small export and trade dependent economy on the periphery of Europe we need to be able to attract businesses to Ireland, and make it an attractive place to do business. Giving a tax break such as this to executives will help to make the country seem like a good place to do create either a European or indeed world headquarters. We have an effective higher tax rate of ~51% when PRSI, USC etc is included, and this is quite high compared to other small economies who rely on FDI.

If the government kept its pre election promise regarding upward only rent reviews it would have done more to protect and create employment and send a clearer message that Ireland was a good place to do business than a measure that further subsidises mainly large foreign multinationals.

Stiffler2

F**king [EMAIL="w@nkers"]w@nkers[/EMAIL].

As usual the rich get richer while the poor get poorer.
This is exactly why they're going ape$hit in the USA due to extremetly wealthy people whom get tax loopholes.

I understand reducing the corporate tax rate and maybe the export of those profits back to their home soil but why give tax relief to the execs in the business over here. F**K them. we don't want to attract top execs, we want to attract business in general.

Load of me hole

My name is URL

I’m actually a little bit surprised that such an incentive can be offered legally. What if this sort of thinking were applied in a different way? “You’re a foreign worker, so we’re gonna take a bigger percentage of income tax from you”

Yeah, I doubt that would go down so well.. I’m all for incentivising firms to set up here, but when the benefits are ambiguously handed out to individuals rather than the sectors they operate in, then it seems a bit discriminatory and open to abuses.

Why the hell should foreign workers be given advantages and tax breaks ahead of their Irish counterparts? It's bad enough that half a million Irish people are unemployed.. now our government are offering incentives for not employing them!

Fcuking geniuses :rolleyes:

mikom

Don't forget to pay your household charge the rest of you people.
Remember, you are not special like those with large incomes.
We want you to keep the rich in the comfort they are accustomed to.

Don't register.......... don't pay

srsly78

Lots of countries do this. If an Irish person goes to work in the Netherlands they can get 25% of their salary taxfree (applies to certain in-demand skills, software engineering is one).

ixoy

Makes sense in many ways. If you're looking to invest in Ireland and thus create employment, you're more likely to if the tax system looks on you favourably. If you're going to be slammed with high taxes you'll probably think "Not bothered" and no investment will come in at all.

SafeSurfer

ixoy wrote: »

Makes sense in many ways. If you're looking to invest in Ireland and thus create employment, you're more likely to if the tax system looks on you favourably. If you're going to be slammed with high taxes you'll probably think "Not bothered" and no investment will come in at all.

There are already a myriad of tax breaks/incentives for companies to invest and create employment in Ireland, not to mention our 12.5% corporation tax.

This is basically a subsidy for companies to attract certain personnel to work in Ireland. Instead of these companies offering wages that will entice them to this country, the Irish taxpayer subsidises these firms so their workers can get a higher take home pay at a smaller cost to the firm.

If workers with a certain skill set are in demand in Ireland those seeking to employ these workers should compete to attract them by offering higher wages. That is what capitalist economics is all about demand and supply. The state should not be subsidising these firms

mikom

SafeSurfer wrote: »

There are already a myriad of tax breaks/incentives for companies to invest and create employment in Ireland, not to mention our 12.5% corporation tax.

This is basically a subsidy for companies to attract certain personnel to work in Ireland. Instead of these companies offering wages that will entice them to this country, the Irish taxpayer subsidises these firms so their workers can get a higher take home pay at a smaller cost to the firm.

If workers with a certain skill set are in demand in Ireland those seeking to employ these workers should compete to attract them by offering higher wages. That is what capitalist economics is all about demand and supply. The state should not be subsidising these firms

Shur there is plenty of internships and CE schemes for the Irish to fill......

Kid Charlemagne

SafeSurfer wrote: »

There are already a myriad of tax breaks/incentives for companies to invest and create employment in Ireland, not to mention our 12.5% corporation tax.

This is basically a subsidy for companies to attract certain personnel to work in Ireland. Instead of these companies offering wages that will entice them to this country, the Irish taxpayer subsidises these firms so their workers can get a higher take home pay at a smaller cost to the firm.

If workers with a certain skill set are in demand in Ireland those seeking to employ these workers should compete to attract them by offering higher wages. That is what capitalist economics is all about demand and supply. The state should not be subsidising these firms

Logically what you say is correct but I dare say if there was 100% tax harmonisation and free trade across the globe Ireland wouldnt have any of these multinationals at all!
Now some might argue thats a good thing, personally I dont agree but thats a seperate argument.

gigino

it means the rest of us pay higher tax that rich ******* blow-ins who companies already get a shed load of grants. Immoral.

marketty

This is a good idea, and costs very little

K-9

SafeSurfer wrote: »

There are already a myriad of tax breaks/incentives for companies to invest and create employment in Ireland, not to mention our 12.5% corporation tax.

This is basically a subsidy for companies to attract certain personnel to work in Ireland. Instead of these companies offering wages that will entice them to this country, the Irish taxpayer subsidises these firms so their workers can get a higher take home pay at a smaller cost to the firm.

If workers with a certain skill set are in demand in Ireland those seeking to employ these workers should compete to attract them by offering higher wages. That is what capitalist economics is all about demand and supply. The state should not be subsidising these firms

Most of the tax breaks/incentives have stopped or are capped at certain levels. I think anybody with 400k or more profit now has to pay an effective rate of 20%, regardless of tax breaks/reliefs.

Tax breaks aren't by themselves a bad idea eg. Urban renewal, it just stayed on the books for far too long and became about local politics. There's a danger of the mob automatically making tax breaks unpopular, and rejecting good ideas.

I don't really see the value in this idea pertaining to multi nationals. I'd assume companies will come here for low Corporation tax, not tax breaks for directors. I'd largely agree with the indigenous break.

BOHtox

Stiffler2 wrote: »

F**king w@nkers.

As usual the rich get richer while the poor get poorer.
This is exactly why they're going ape$hit in the USA due to extremetly wealthy people whom get tax loopholes.

I understand reducing the corporate tax rate and maybe the export of those profits back to their home soil but why give tax relief to the execs in the business over here. F**K them. we don't want to attract top execs, we want to attract business in general.

Load of me hole

I don't think you understand it at all. You should probably read it first.

It gives tax relieft to foreign workers, in the case where Irish people can't fill the posts, so that the company can stay/relocate here and not have to move abroad.

This create/save thousands of jobs over the next couple of years. Most countries in Europe also have similar incentives

Pete M.

Makes sense? Good idea?

Fcuk that :eek:

This is possibly the most offensive and inflammatory budgetary measure for quite some time afaik :mad:

Gives a good indication of the agenda and frame of mind of those who thought it up though.

Is it actually true about the specific breaks for the private schools thing?

BOHtox

SafeSurfer wrote: »

There are already a myriad of tax breaks/incentives for companies to invest and create employment in Ireland, not to mention our 12.5% corporation tax.

This is basically a subsidy for companies to attract certain personnel to work in Ireland. Instead of these companies offering wages that will entice them to this country, the Irish taxpayer subsidises these firms so their workers can get a higher take home pay at a smaller cost to the firm.

If workers with a certain skill set are in demand in Ireland those seeking to employ these workers should compete to attract them by offering higher wages. That is what capitalist economics is all about demand and supply. The state should not be subsidising these firms

No point in having low tax if you don't have skilled workers to fill them. This will attract high skilled workers to Ireland thus creating/saving further jobs

BOHtox

Pete M. wrote: »

Makes sense? Good idea?

Fcuk that :eek:

This is possibly the most offensive and inflammatory budgetary measure for quite some time afaik :mad:

Gives a good indication of the agenda and frame of mind of those who thought it up though.

Is it actually true about the specific breaks for the private schools thing?

Typical anti-government.

You make absolutely no valid points and you're as vague as fúck. Be specific. That's just generic rhetoric!

Sindri

SafeSurfer wrote: »

A Special Assignee Relief Programme contained in the finance bill allows highly paid executives of multinational and indigenous companies to have a significant proportion of their salaries exempt from tax. A tax relief worth €5000 is also available to them to send their children to private schools.

In my opinion large multinational companies that are effectively subsidised by our low corporation tax rate should use some of their huge profits to pay for the staff they need instead of lobbying for a further subsidy from the Irish taxpayer.

The Finance Bill also included 21 new measures aimed at supporting the international financial services industry.


http://www.irishtimes.com/newspaper/frontpage/2012/0208/1224311465114.htm


lhttp://www.rte.ie/news/2012/0208/budget.html

Good Idea. Keep the rich people who makes decisions in the company here and happy.

Pete M.

BOHtox wrote: »

Typical anti-government.

You make absolutely no valid points and you're as vague as fúck. Be specific. That's just generic rhetoric!

Thanks.

And the point that I'm trying to make is that this is bullsh1t.

And your valid points are?

BOHtox

Pete M. wrote: »

Thanks.

And the point that I'm trying to make is that this is bullsh1t.

And your valid points are?

I made two posts previous to that one. Feel free to read them...

edit: didn't think so...

blue2school

Pete M. wrote: »

BOHtox wrote: »

Typical anti-government.

You make absolutely no valid points and you're as vague as fúck. Be specific. That's just generic rhetoric!

Thanks.

And the point that I'm trying to make is that this is bullsh1t.

And your valid points are?

Michael noonan here

SafeSurfer

BOHtox wrote: »

No point in having low tax if you don't have skilled workers to fill them. This will attract high skilled workers to Ireland thus creating/saving further jobs

I understand your point BOHtox. My point is that the companies that need high skilled workers can attract then by paying them sufficiently. This tax break is not widespread. Do cutting edge firms in, for example high tax countries like Norway, Sweden and Finland attract the staff they need through subsidies from other taxpayers or by the companies paying their staff wages high enough to attract them to high tax economies?

We already incentivise corporations to do business here, this is a further unnecessary incentive aimed at wealthy corporations and those earning between 75,000 and 500,000 euro while minimum wage workers are paying a supposedly universal social charge.

Statistician

This is a terrible idea for the following reasons:

1. Free market distortion. The Fail Gael government has not learned anything from the property bubble where property tax incentives helped inflate the market.

2. Hugely unfair to small indigenous companies that are directly competing with large firms that can now hire their staff at effectly a reduced rate. (The gross pay can come down, not effecting the net pay)

3. Why should one section of society get this treatment? - where is my tax break? I'm actually creating jobs, and this just makes me want to leave Ireland, and relocate my company somewhere that actually fosters growth.