I don't have in-depth knowledge of how government program and benefits work in different countries but talking with friends living elsewhere there seems to be a common theme that things are done a bit different in Ireland.
One Big Taxation Pot
We seem to operate a centralised tax pot where money is pooled and then divide up as per (political) needs. Taxes that may appear to have a defined use behind the scenes really don't. Public sector pension levies don't fund investment for public pension, PRSI doesn't get invested and fund pensions etc. This makes it difficult to defend any tax. Doesn't USC just go to general tax pot? While I understand the need for flexibility failure to ring fence monies has impacts on funding of less urgent needs. I know this is not how the Canadian Pension Plan works and even public sector Canadian pensions. It seems a reckless approach.
Benefits Linked to "taxes" Paid
Similarly we tent to take a one size fits all approach to benefits. We also don't generally cap what you pay in. For example if PRSI was really an insurance there would be a cap on what you pay in because what you can get out is definitely capped. I guess this goes back to the above point of one tax pot. Open to correction but the full non contributory pension is the same as the full contributory. Similarly JSA and JSB were the same. That is now changed or will do soon. A very welcome move. Covid really shone a light on how pool benefits are for people who lose there jobs after paying taxes all their lives. Maternity Benefits are not linked to what you have paid and when totalled are some of the worst in Europe, I think we get away with it due to it not impacting people in the public sector and generally MNC.
Benchmarked Benefits / Tax changes
While government does need to have the ability to control tax or benefit rates elsewhere in the world it is not uncommon for there to be formulas in place that increase tax bands or benefits annually based off inflation. In Ireland any changes are political gifts to distribute on budget day where as a failure to increase tax bands is really a tax increase.
Interesting to hear thoughts on the above. Are we out of touch? It seems that pelicans favour direct control of a big tax pot as opposed to setting up systems the are funded independently and where more certainty is available.
Not linking benefits to what is paid in probable impacts on the middle class the most and gives a feeling that we get very little for what we pay in. A final point and some what separate but also probable impacting the middle class the most.
Tax Free Investing
Investing appears to be a dirty word in Ireland and I'm not going to rant on about deemed disposal, but tax free investment allowances are common elsewhere. I mean people on this island have them. Why have they never been on the agenda here? Could be used to save for a deposit or kids college costs. Would that really be unacceptable politically?
One Big Taxation Pot
We seem to operate a centralised tax pot where money is pooled and then divide up as per (political) needs. Taxes that may appear to have a defined use behind the scenes really don't. Public sector pension levies don't fund investment for public pension, PRSI doesn't get invested and fund pensions etc. This makes it difficult to defend any tax. Doesn't USC just go to general tax pot? While I understand the need for flexibility failure to ring fence monies has impacts on funding of less urgent needs. I know this is not how the Canadian Pension Plan works and even public sector Canadian pensions. It seems a reckless approach.
Benefits Linked to "taxes" Paid
Similarly we tent to take a one size fits all approach to benefits. We also don't generally cap what you pay in. For example if PRSI was really an insurance there would be a cap on what you pay in because what you can get out is definitely capped. I guess this goes back to the above point of one tax pot. Open to correction but the full non contributory pension is the same as the full contributory. Similarly JSA and JSB were the same. That is now changed or will do soon. A very welcome move. Covid really shone a light on how pool benefits are for people who lose there jobs after paying taxes all their lives. Maternity Benefits are not linked to what you have paid and when totalled are some of the worst in Europe, I think we get away with it due to it not impacting people in the public sector and generally MNC.
Benchmarked Benefits / Tax changes
While government does need to have the ability to control tax or benefit rates elsewhere in the world it is not uncommon for there to be formulas in place that increase tax bands or benefits annually based off inflation. In Ireland any changes are political gifts to distribute on budget day where as a failure to increase tax bands is really a tax increase.
Interesting to hear thoughts on the above. Are we out of touch? It seems that pelicans favour direct control of a big tax pot as opposed to setting up systems the are funded independently and where more certainty is available.
Not linking benefits to what is paid in probable impacts on the middle class the most and gives a feeling that we get very little for what we pay in. A final point and some what separate but also probable impacting the middle class the most.
Tax Free Investing
Investing appears to be a dirty word in Ireland and I'm not going to rant on about deemed disposal, but tax free investment allowances are common elsewhere. I mean people on this island have them. Why have they never been on the agenda here? Could be used to save for a deposit or kids college costs. Would that really be unacceptable politically?
