ESRI report on effective tax rates in Ireland

NoRegretsCoyote

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There is not much surprising in this. Ireland tax corporate profits and personal income lower than elsewhere. Consumption taxes are high (VAT, VRT, excise).

High consumption taxes are a policy choice and is one of the reasons that consumer prices are high compared to elsewhere. A small market and lack of competition in certain sectors is another.
 

Purple

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There is not much surprising in this. Ireland tax corporate profits and personal income lower than elsewhere. Consumption taxes are high (VAT, VRT, excise).

High consumption taxes are a policy choice and is one of the reasons that consumer prices are high compared to elsewhere. A small market and lack of competition in certain sectors is another.
The marginal tax rate on labour is very high here, which is an indicator of how narrow out tax base is.
 

Purple

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I expected bigger difference on consumption taxes.
Consumption taxes include indirect taxes. The Excel sheet gives them as "Consumption ETR including indirect taxes". We have very few (no water charges, extremely low property taxes etc) so that brings it down.
 

odyssey06

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Consumption taxes include indirect taxes. The Excel sheet gives them as "Consumption ETR including indirect taxes". We have very few (no water charges, extremely low property taxes etc) so that brings it down.
Property taxes would affect it, hadn't considered that.

On the other hand, we have a lot of indirect taxes on vehicles, fuel, alcohol.

Water charges wouldn't be a tax though would they... part of the reason it turned out so messy?
Unless you mean in other countries indirect taxation funds it?
For comparison, I don't think electricity prices would be included, but maybe PSO levies would be? And insurance levies?
 

Purple

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Property taxes would affect it, hadn't considered that.

On the other hand, we have a lot of indirect taxes on vehicles, fuel, alcohol.

Water charges wouldn't be a tax though would they... part of the reason it turned out so messy?
Unless you mean in other countries indirect taxation funds it?
For comparison, I don't think electricity prices would be included, but maybe PSO levies would be? And insurance levies?
Good point on water charges.
 
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