For my part, I'd suggest we eliminate the levies and PRSI and have a combined rate of income tax at a few levels. 0% on the first €10k, 15% on the next €10k, 30% on the next €10k and 50% of earnings above €30k.
New Simple DerKaiser system:
So a single person on 50,000 would pay:
10,000 @ 0 % = 0
10,000 @ 15 % = 1,500
10,000 @ 30% = 3,000
20,000 @ 50% = 10,000
= 14,500 or 29%
Existing Complex Gombeen System:
They are currently paying (PAYE worker & if my calc is correct):
PAYE:
36,400 @ 20% = 7,280
13,600 @ 41% = 5,576
Less TC: 12,856 - (1,830+1,830) = 9,196
PAYE = 9,196
PRSI @ Class A1 :
Health Levy Free Allowance: 127 * 52 = 6,604
6,604 @ 4% = 264.16
50,000 - 6,604 = 43,396
43,396 @ 8% = 3,471.68
PRSI = 3,735.84
Income Levy:
50,000 @ 2% = 1,000
Tax = 9,196 + 3,735.84 + 1,000
= 13,931.84 or 27.86%
You would need to set up a spread sheet, for different levels of income, but not much difference in tax take @50k and much simpler to administer.