TV License attacks again...

Maura74

Obviously the law is different in Ireland to the UK.

http://www.youtube.com/watch?v=xfHRhXW1hno

Godge

mathepac wrote: »

So it seems it's acceptable to make wildly inaccurate statements about taxing older citizens income, challenging posters to substantiate these inaccuracies is now "being deliberately obtuse". Following on from that logical leap all inaccurate post must now remain unchallenged.
No you don't. You pay at one of the standard rates on a different proportion of your income. So there is no such thing as a different tax rate for older people as the original post alleges.
I didn't ask as PRSI is not tax.

What tax credits do is lower the average/effective rate of tax on your income.

To show you mathematically:

Assume: Tax rate 20%. Two people on an income of €50,000.

Person A: Tax credit of €5,000. The tax they pay is €10,000 - €5,000 tax credit giving them a tax bill of €5,000 giving them an average/effective tax rate of 10%.

Person B: No tax credit. The tax they pay is €10,000 with no deduction leaving them with an average/effective tax rate of 20%.

So the following statement is therefore true:

For any level of income, the availability of the over-65 tax credit means that the average/effective tax rate paid by a person aged over 65 is lower than the average/effective tax rate paid by a person aged under 65 (all other circumstances being equal).

That is really just a long-handed way of saying over-65s pay have a lower tax rate than under-65s. I guess that the original poster assumed a certain level of knowledge about how the taxation system works.

markpb

Godge wrote: »

I guess that the original poster assumed a certain level of knowledge about how the taxation system works.

Or perhaps a lower level of pedantry?