How high can dirt tax rate rise to?

[mcriot29]

In the goverments 4 year plan they say dirt rise to 30% , do you think it willrise anymore , uk savings tax is at 20 % making irelands rate very high. I would think the highest tax on savings in europe .

 

[Aureus]

The Republic of Ireland doesn't have the highest tax on savings in Europe because the UK, and probably other member states as well, tax savings interest in the same way as other income.

So in the UK if you are a higher rate payer the tax on your interest is 40%. If you make more than £150,000 per annum your interest is taxed at 50%. Of course, when it comes to the UK, this has to be balanced against the fact that there are generous tax free ISA products available.

In my own view in the short term our government should increase DIRT and taxes on investments and pensions as much as possible, in order to lower VAT and other taxes, and boost consumer demand. Incentivising saving is the right long term goal but actively harmful in the midst of an economic crisis.

 

[mcriot29]

Yes high earners in uk are taxed higher rate im talking about here its 30 percent for everyone for low and high income savers thats unfair ,should be say 30 percent for low incomes and then 40 for high income savers so my point is correct uk is far lower on tax for savers , same rate in uk a low income saver pays 20 percent tax not 30 so ireland has a lot higher tax on savings i agree with uk idea tax savings at higher income

 

[horusd]

...
In my own view in the short term our government should increase DIRT and taxes on investments and pensions as much as possible, in order to lower VAT and other taxes, and boost consumer demand. Incentivising saving is the right long term goal but actively harmful in the midst of an economic crisis.

Great, in a country awash in debt we should encourage more spending and less saving. I understand the reason you say this, but it's a fool's errand long term.

 

[Aureus]

That's why I state that this should be the short term policy. When your house is on fire the first thing you do is put it out.

In the medium to long term, once the economy is back on its feet, the state has more than enough fiscal tools at its disposal to encourage saving, should it chose to use them.