You're mixing up your taxes there Brendan. Please don't conflate the issue.So Income Tax is a "resentment tax" favoured by people on social welfare who are "jealous" of those who are "lawfully" working?
The two issued are intrinsically linked. Taxing earned income at a higher rate than unearned income is, to me, morally abhorrent. If we want a society built on principles such as equality of opportunity then lower taxes on work and higher taxed on unearned income and inherited wealth are what we should be aiming for.You're mixing up your taxes there Brendan. Please don't conflate the issue.
I'll be impacted significantly by inheritance tax and I think it should be increased but taxes on work should be reduced by a corresponding amount.Not at all.
The same principles apply.
People who are not impacted much by a tax think that it should be higher while those paying it think that it should be lower.
It applies to Income Tax just as much as it applies to Capitals Acquisition Tax.
Capital transfers aren't even income.The two issued are intrinsically linked. Taxing earned income at a higher rate than unearned income is, to me, morally abhorrent. If we want a society built on principles such as equality of opportunity then lower taxes on work and higher taxed on unearned income and inherited wealth are what we should be aiming for.
Increases in capital tax rates inevitably mean lower capital tax revenues.I'll be impacted significantly by inheritance tax and I think it should be increased but taxes on work should be reduced by a corresponding amount.
No, rental and investment income is taxed punitively with all sorts of minor passive-aggressive provisions that cumulatively drive up the effective rate.I have never really understood the expression "unearned income".
Isn't all income taxed in Ireland at the same rates whether it is from a salary or rent or dividends? ( Some exceptions for unit linked funds.)
Increases in capital tax rates inevitably mean lower capital tax revenues.
So if a business person or farmer dies, their successor gets lumbered with a huge tax deferral that will sometime have to be paid?2) Business and Agricultural Relief should become a deferral rather than a huge reduction in liability.
If I get a quarter of a million euro in cash from an inheritance from a parent it's income in everything but name. If I earn the same amount of money by working the marginal tax rate is 52%. I find that inequitable.Capital transfers aren't even income.
It depends on how you define income. For me someone giving me a big lump of cash is income. If I get it by working the State takes half of it. If I get it be inheriting it (not earning it) then the State doesn't take any of it.I have never really understood the expression "unearned income".
Isn't all income taxed in Ireland at the same rates whether it is from a salary or rent or dividends? ( Some exceptions for unit linked funds.)
I agree, and if the owners derive an income from the business they pay tax on it.So if a business person or farmer dies, their successor gets lumbered with a huge tax deferral that will sometime have to be paid?
How would that work? Who in their right mind is ever going to advance business capital investment or working capital finance to a such a successor whose entire collateral is effectively mortgaged to the State?
Is the failure rate in second- and third- generation firms in this country not bad enough as it is?
Many in this country and many on this site are almost obsessed with finding new and ingenious ways to tax others (and it's always others) as long and as hard as possible, while remaining blind to the general inefficacy of public expenditure generally and public expenditure waste in particular.
It's clearly not income. It's a capital transfer. Income enhances wealth. Capital transfers dissipate it.If I get a quarter of a million euro in cash from an inheritance from a parent it's income in everything but name. If I earn the same amount of money by working the marginal tax rate is 52%. I find that inequitable.
Most peoples wealth in this country was gained through property price appreciation. That isn't after tax income, that's just capital appreciation.I think €500,000 is about the right level for the Parent/Child threshold. I do struggle with the fact that the State takes 52% of any incremental income I earn (i.e. the majority) and then takes interest in what I do with my clean, after tax money. Interestingly, gifts are not taxable in the UK.
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