That must mean it's a good thing; a simple tax increases productivity and real output so more accountants are employed by these profitable cmpanies making simple tax returns.
Is that what you are saying?
Indeed, but as complexity increases, productivity and real output decreases.
That must mean it's a good thing; a simple tax increases productivity and real output so more accountants are employed by these profitable companies making simple tax returns.
Is that what you are saying?
Absolutely right. Even the more left leaning parties like Labour, SF and even the SDLP were out in the last 12 months saying how terrible it would be if Ireland were "forced" to increase it's corporate tax rate. I even heard Vincent Brown talk about how the low tax rate attracted and retained corporations of all sizes. What has always baffled me is that the same people are then out advocating an increase in taxation on "the rich", as if it would not have the same affect as increasing corporation tax. Perfect example of Einstein's definition of insanity.If kept low it will attract high earning workers to this country just like our corporation tax has attracted the multinationals here. We could really become a knowledge economy, instead of just pretending we are.
This is very true. In order for a flat tax rate to be successfully introduced it would have reduce the tax liability of all those currently paying taxes. Unfortunately there are a huge number of low income earners in this country that do not pay tax, but they have to be brought in to the tax net.Introducing a flat rate of tax is an attractive idea and it well worth examining but in reality, it is very difficult to implement. The UK looked into this a few years ago and found that there would be a something like a £50 billion shortfall in income tax in year one that would have to be found somewhere. By adjusting the rate and tax free allowances, they found that middle income earners ended up losing out at the expense of lower and higher income earners. Countries would love to move towards this system but the implementation is very complicated.
This is not a good example - retired people get additional tax breaks that workers dont.
I'd guess that a PAYE worker with a similar income is paying c.30%
You seem to forget that income tax is just one of the many taxes in place in Ireland today. VAT brings in more to the Govt than income tax. Everybody pays tax.This is very true. In order for a flat tax rate to be successfully introduced it would have reduce the tax liability of all those currently paying taxes. Unfortunately there are a huge number of low income earners in this country that do not pay tax, but they have to be brought in to the tax net.
As soon as I saw that Chris had referred to people paying 'no tax', it was inevitable that you would swoop in (again...) with your 'income tax isn't the only tax' soundbite. VB's article was about more income tax for 'the rich' - do you think it was unclear to ANYBODY (yourself included) that what Chris was talking about (and this whole thread was about...) was income tax? Does your comment add anything to the topic of this thread?You seem to forget that income tax is just one of the many taxes in place in Ireland today. VAT brings in more to the Govt than income tax. Everybody pays tax.
Sorry for letting an inconvenient fact get in the way of a good rant. I withdraw everything.
VAT brings in more to the Govt than income tax.
You seem to forget that income tax is just one of the many taxes in place in Ireland today. VAT brings in more to the Govt than income tax. Everybody pays tax.
Regarding Orka's rather impolite remarks about Complainer's mention of VAT..
Mentioning other taxes that everyone pays may indeed "add something to the topic of this thread" . Discussing income-tax rates without reference to other taxes makes for a rather narrow debate .
Even if one thinks the topic should have concentrated exclusively on income tax, with no mention of any other tax allowed, there is no reason for such an ill-tempered rebuke.
There is a history with Complainer; making the same point repeatedly about non payroll taxes in discussions about income tax.
Yes, everyone pays VAT and that's fair....do you think that it's fair that some people do not pay income tax whilst others do?
Thanks for the update on the numbers. I wasn't aware that income tax had crept back up ahead of VAT. However, the substantive point still applies - that income tax is not the ONLY tax. It is less than half of our total tax take. Lots of people who don't pay income tax do pay other taxes. Any discussions around the equity or fairness of our income tax system are looking at less than half of the big picture.A good point, but a recently obsolete point. The budget last December has significantly shifted the landscape.
Income taxes & levies (excluding PRSI) are up 26% whilst VAT is down 2% year on year to 30/09/2011.
http://www.finance.gov.ie/documents/exchequerstatements/2011/analtaxsept.pdf
Thanks for the update on the numbers. I wasn't aware that income tax had crept back up ahead of VAT. However, the substantive point still applies - that income tax is not the ONLY tax. It is less than half of our total tax take. Lots of people who don't pay income tax do pay other taxes. Any discussions around the equity or fairness of our income tax system are looking at less than half of the big picture.
PS Did anyone else have a giggle at the name of that PDF file?
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