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ESRI says we need more "progressive" taxes lol

  • 21-05-2021 8:03am
    #1
    Registered Users Posts: 645 ✭✭✭ Fred Cryton


    Firstly let's please stop using the word "progressive" in relation to taxes. What we're really talking about is robbing the middle class blind in order to pay for bloated welfare payments and bloated public sector salaries and pensions.


    Ireland already has some of the highest marginal tax rates, north of 50% taken off us in the private sector. What really should be happening is those on lower incomes should be paying more taxes. A person earning €20k in Germany pays €4k in tax. Here they pay €1k.



    I love how it doesn't even enter their little heads that perhaps public sector pay freezes might be one answer to budget deficits...


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Comments

  • Registered Users Posts: 11,044 ✭✭✭✭ Geuze


    I agree with you, the marginal tax rates faced by average workers are already too high.


    However, overall, taxes are not too high, and ageing means higher costs now and in the future.

    So I accept that taxes as a share of national income must rise (not by a lot), but I agree with you that the 48.5% MTR facing average workers is already too high.


  • Registered Users Posts: 11,522 ✭✭✭✭ titan18


    Or we should lower spending (particularly day to day spending) instead of robbing us more.


  • Registered Users Posts: 4,977 ✭✭✭ Allinall


    "Progressive" in a taxation sense means that those that earn more pay more.

    Surely this is a good thing to be aiming for?


  • Moderators, Politics Moderators, Sports Moderators Posts: 23,977 Mod ✭✭✭✭ Chips Lovell


    When it comes to taxation, it's quite tricky to compare like with like. There's tendency to focus on just income tax rates without taking into account allowances, credits and, the big one, social security contributions. We've a relatively high rate of income tax compared to a lot of countries, but PRSI contributions are fairly low.

    According to the latest OECD figures, the tax wedge for the average Irish worker is well below the OECD average.

    And that's just the tax on wages. We get off fairly lightly in terms of property and municipal taxes here:

    figure-1-web-full.PNG


  • Registered Users Posts: 553 ✭✭✭ gibgodsman


    Firstly let's please stop using the word "progressive" in relation to taxes. What we're really talking about is robbing the middle class blind in order to pay for bloated welfare payments and bloated public sector salaries and pensions.


    Ireland already has some of the highest marginal tax rates, north of 50% taken off us in the private sector. What really should be happening is those on lower incomes should be paying more taxes. A person earning €20k in Germany pays €4k in tax. Here they pay €1k.



    I love how it doesn't even enter their little heads that perhaps public sector pay freezes might be one answer to budget deficits...

    Can you define the middle class and lower class for me please? I work full time and at this rate I have no idea which I fall into anymore


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  • Registered Users Posts: 645 ✭✭✭ Fred Cryton


    Allinall wrote: »
    "Progressive" in a taxation sense means that those that earn more pay more.

    Surely this is a good thing to be aiming for?




    Not if it means a cohort of around 20% of the population are paying for everything while 80% pay next to nothing.



    Not only is it not fair, it's also economically damaging (as those higher rate taxpayers flee the country) and it's also socially dangerous. The 80% will have no skin in the game and predictably will vote more and more left as "someone else" will be paying for everything.


  • Registered Users Posts: 645 ✭✭✭ Fred Cryton


    When it comes to taxation, it's quite tricky to compare like with like. There's tendency to focus on just income tax rates without taking into account allowances, credits and, the big one, social security contributions. We've a relatively high rate of income tax compared to a lot of countries, but PRSI contributions are fairly low.

    According to the latest OECD figures, the tax wedge for the average Irish worker is well below the OECD average.

    And that's just the tax on wages. We get off fairly lightly in terms of property and municipal taxes here:

    figure-1-web-full.PNG




    This is a nonsense because you're including low earners here. Low earners pay very little tax in Ireland, way too little. That is where any tax burden should be focused, as you have demonstrated.


  • Registered Users Posts: 4,977 ✭✭✭ Allinall


    Not if it means a cohort of around 20% of the population are paying for everything while 80% pay next to nothing.



    Not only is it not fair, it's also economically damaging (as those higher rate taxpayers flee the country) and it's also socially dangerous. The 80% will have no skin in the game and predictably will vote more and more left as "someone else" will be paying for everything.

    Where are you getting these figures from?


  • Registered Users Posts: 2,051 ✭✭✭ Ninthlife




    Ireland already has some of the highest marginal tax rates, north of 50% taken off us in the private sector

    Is there a different tax rate for those outside the private sector?


  • Registered Users Posts: 645 ✭✭✭ Fred Cryton


    Ninthlife wrote: »
    Is there a different tax rate for those outside the private sector?


    The public sector are a net cost to the State. A financial burden. Only the private sector generates taxable wealth.


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  • Registered Users Posts: 1,541 ✭✭✭ barry181091


    We really should be charging employers more PRSI, along with an increase for employees but the employer portion is low by European standards. We can't have world class services without a comparable tax take, which you can't just take from income tax alone.


  • Moderators, Politics Moderators, Sports Moderators Posts: 23,977 Mod ✭✭✭✭ Chips Lovell


    This is a nonsense because you're including low earners here. Low earners pay very little tax in Ireland, way too little. That is where any tax burden should be focused, as you have demonstrated.

    Not really, if you do the sums. For example, the chart has the Irish average of income tax a little under 20%. A couple with a combined income of 100,000 (which is a decent haul) will pay around 19% in income tax.


  • Registered Users Posts: 23,195 ✭✭✭✭ lawred2


    Allinall wrote: »
    "Progressive" in a taxation sense means that those that earn more pay more.

    Surely this is a good thing to be aiming for?

    aiming for?

    what would you describe the current system as?


  • Registered Users Posts: 66 ✭✭ fael


    Time to tax lower paid workers this time. I'm in the tax bracket where I'm screwed with the 50+% marginal rate (USC included). I've lost most off my job in the pandemic (aviation). And while other countries have supports in place for staff, my support is running out (because I haven't lost my job entirely, I can only get JB, which runs out in 11 days from now). But government is happy to screw me even more, assuming aviation still exists at the end of this year. It will elsewhere in Europe, but Ireland will be decimated.

    If they want to do something progressive I actually think they should give people that have had a large decrease in income during a pandemic a tax break equivalent to that decrease. Most groups (70% in earlier newspaper articles) have had the same or more income during the pandemic, and thus have not been hit financially. That other 30% should be allowed to build up some financial resilience again. I'm working 2 jobs now instead of 1 and I'm still barely able to pay my bills.


  • Registered Users Posts: 11,357 ✭✭✭✭ Hello 2D Person Below


    WOKE BRIGADE ROBBING MUH TAXES!
    Allinall wrote: »
    "Progressive" in a taxation sense means that those that earn more pay more.

    Precisely.


  • Registered Users Posts: 27,160 ✭✭✭✭ super_furry


    Not if it means a cohort of around 20% of the population are paying for everything while 80% pay next to nothing.

    Really interested to see if there's anything factual backing this up.


  • Registered Users Posts: 23,195 ✭✭✭✭ lawred2


    Not really, if you do the sums. For example, the chart has the Irish average of income tax a little under 20%. A couple with a combined income of 100,000 (which is a decent haul) will pay around 19% in income tax.

    why did you ignore PRSI and USC which are also progressive taxes?

    Adds another 14k to that households total state mandated deductions.


  • Registered Users Posts: 2,051 ✭✭✭ Ninthlife


    The public sector are a net cost to the State. A financial burden. Only the private sector generates taxable wealth.

    Thats not what I asked


  • Registered Users Posts: 23,195 ✭✭✭✭ lawred2


    WOKE BRIGADE ROBBING MUH TAXES!



    Precisely.

    Is this declaration supposed to some sort of revelation? :confused:


  • Registered Users Posts: 645 ✭✭✭ Fred Cryton


    Not really, if you do the sums. For example, the chart has the Irish average of income tax a little under 20%. A couple with a combined income of 100,000 (which is a decent haul) will pay around 19% in income tax.


    Thats the same as a single person on 50k. That person only pays 20% because they pay nothing at all on the first 20k.



    So again, lower earners need to pay more tax in Ireland.


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  • Registered Users Posts: 9,003 ✭✭✭ The_Dazzler


    The public sector are a net cost to the State. A financial burden. Only the private sector generates taxable wealth.

    So a nurse providing hospice care is a "financial burden". Right so.


  • Registered Users Posts: 3,840 ✭✭✭ fvp4


    Really interested to see if there's anything factual backing this up.

    It’s true of income tax. In fact income tax didn’t even fall much during covid with 300k mostly low paid workers laid off.

    Other taxes exist though.


  • Registered Users Posts: 3,840 ✭✭✭ fvp4


    So a nurse providing hospice care is a "financial burden". Right so.

    Well in terms of net tax they are. That’s a financial reality. We can’t fund government services with the tax taken from the public service. Obviously. The tax taken from the public sector is money not received by public sector worker but it isn’t money received by the government.


  • Registered Users Posts: 19,802 ✭✭✭✭ suicide_circus


    Allinall wrote: »
    "Progressive" in a taxation sense means that those that earn more pay more.

    Surely this is a good thing to be aiming for?

    Absolutely. But a large cohort of low paid workers paying NO income tax is wrong.


  • Registered Users Posts: 11,357 ✭✭✭✭ Hello 2D Person Below


    Absolutely. But a large cohort of low paid workers paying NO income tax is wrong.

    Why?


  • Registered Users Posts: 4,367 ✭✭✭ timmyntc


    Why?

    Get the benefits of society without paying your fair share.

    Also its not very safe from an economic point of view - ideally you have as wide a tax base as possible so that you are less susceptible to economic shocks


  • Registered Users Posts: 1,615 ✭✭✭ soupandpoitin


    Maybe anyone deemed "non essential" should have their taxes deemed "non essential" too?


  • Moderators, Politics Moderators, Sports Moderators Posts: 23,977 Mod ✭✭✭✭ Chips Lovell


    lawred2 wrote: »
    why did you ignore PRSI and USC which are also progressive taxes?

    I didn't, my original post factored them in to demonstrate that the tax burden here is relatively low. If you do factor it in, it's still 25% or so, which is relatively unremarkable compared to most other countries.
    So again, lower earners need to pay more tax in Ireland.

    Is there much more to be squeezed from low income earners? Bearing in mind that while income tax is progressive, other taxes like VAT and excise are regressive. And also that the cost of living here is relatively high. I don't see many low income earners having much left having paid for housing and other living expenses.


  • Registered Users Posts: 1,374 ✭✭✭ Mr. teddywinkles


    Theres at least a billion nearly every budget pumped into health. Wtf are they doing with the money. They not putting it into IT systems, that's for sure.


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  • Registered Users Posts: 1,615 ✭✭✭ soupandpoitin


    Why?

    Not paying tax is basically like being a child getting pocket money. Everyone should have to pay income tax, even if it's only a small amount on a low income.


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