I see several posters here and in other threads claiming "income tax is too high in Ireland". Is that really the case? This research seems to suggest that this may not be the case.
I have no idea what that means.it may be the case that the value realisation / capital allocation decisions from the income tax take is poor rather than the tax take itself being the problem.
To pay the above requires a lot of tax-payers money. If it continues, more tax will be required.
Effective income tax rates are not very high, no.
However, the entry point to the top marginal tax rate MTR is very low.
You reach 48.5% at about 36k, that is crazy.
13k | 0% |
15k | 1% |
20k | 8% |
30k | 14.8% |
40k | 19.8% |
50k | 25.5% |
60k | 29.4% |
70k | 32.1% |
80k | 34.6% |
90k | 36.5% |
100k | 38.1% |
But it's a thread about income taxesYou can't look at Income Tax in isolation, you have to look at the overall tax burden.
When you flush the toilet does your poo go away?it's increasingly difficult to see what services I'm getting in return
My experience of a lifetime working in the private sector is that it's rarely a paragon of efficiency and common sense either. And that includes several US HQ'd publicly quoted multinationals where results are measured quarterly and by the markets. But it's a common trope to assume that such inefficiency is the sole domain of public services only.there is gross inefficiency in how the State delivers services and, in particular, how it regulates and interacts with the private sector.
My experience of a lifetime working in the private sector is that it's rarely a paragon of efficiency and common sense either. And that includes several US HQ'd publicly quoted multinationals where results are measured quarterly and by the markets. But it's a common trope to assume that such inefficiency is the sole domain of public services only.
I agree with you that the private sector is nothing special either but the services delivered by the State are more important so it's more important that they are delivered well and efficiently.My experience of a lifetime working in the private sector is that it's rarely a paragon of efficiency and common sense either. And that includes several US HQ'd publicly quoted multinationals where results are measured quarterly and by the markets. But it's a common trope to assume that such inefficiency is the sole domain of public services only.
I agree. LEAN methodology is a good driver for change. It empowers people at every level to make the thousands of small changes that add up to a big difference. When the high volume of low value changes are made the big structural problems become more visible and are easier to fix.There is an infatuation with 'change' and paying huge sums to plan change across both public and private sectors.
I think the issue is more that we still have too narrow a tax base with too much tax on labour. That creates an unequal society where those starting off are disadvantaged.I think Tax Rates are unfairly high for younger people, especially in the current economic environment. I think people who are in essentially services that are lower paid deserve better tax breaks than those working in non-essential services with higher wages.
But as another poster said earlier, this thread is specifically about income taxes/deductions.I think the issue is more that we still have too narrow a tax base with too much tax on labour. That creates an unequal society where those starting off are disadvantaged.
On top of that, you generally don't get much in the way of choice when it comes to state services. If I want a product of the private sector, then I'll usually have choice and the more efficient company will often win that business by offering better value / quality.I agree with you that the private sector is nothing special either but the services delivered by the State are more important so it's more important that they are delivered well and efficiently.
"Fair" is a relative term. Why is very progressive regarded as fair?And the report that I linked to in my original post (split off from another thread) assesses the Irish income tax regime as generally fair - i.e. not onerous and very progressive.
Ok, maybe I should've quoted from the report's abstract for those who haven't read it."Fair" is a relative term. Why is very progressive regarded as fair?
Why would a progressive tax system not be fair? Surely those who earn more should pay more?At average incomes and below, the Irish income tax burden is relatively low when compared to other EU Member States...
The Irish tax and welfare system is the most progressive and redistributive in the EU – in terms of offsetting household and market income inequalities.