Are income tax rates really too high in Ireland

Therefore they believed it would be too expensive, based on certain assumptions taken, rather than Ireland's market size, if I've followed correctly. I
UHI can work in a small market.

The 2015 decision to shelve UHI (Varadkar's doing, which no one remembers) was mainly on the grounds that it would be expensive and involve changes to pretty much all delivery of healthcare at all levels.

But this was just another policy choice, not some kind of insurmountable obstacle.
 
UHI can work in a small market.

The 2015 decision to shelve UHI (Varadkar's doing, which no one remembers) was mainly on the grounds that it would be expensive and involve changes to pretty much all delivery of healthcare at all levels.

But this was just another policy choice, not some kind of insurmountable obstacle.
You think Slaintecare won't be expensive and wont involve changes to pretty much all delivery of healthcare at all levels?
 
You think Slaintecare won't be expensive and wont involve changes to pretty much all delivery of healthcare at all levels?
No, and I never suggested as much!

I'm agnostic about healthcare delivery models and I don't have an expertise. There are lots of options from UHI, to something like the NHS, to the US system.

None of these are impossible in the Irish context. Large-scale structural reform requires near-infinite political will, and I won't see much of that around.
 
No, and I never suggested as much!

I'm agnostic about healthcare delivery models and I don't have an expertise. There are lots of options from UHI, to something like the NHS, to the US system.

None of these are impossible in the Irish context. Large-scale structural reform requires near-infinite political will, and I won't see much of that around.
I'm not an expert either, but I know that the NHS isn't an insurance model at all, unless I'm badly mistaken. There is a fair degree of political will and near all-party support for Slaintecare. Why would UHI have been canned when Slaintecare has similar demands for reform?
 
Looks like the fuel protests have gotten the message through to government that people are fed up paying high taxes not just on fuel but on everything in this country.
Simon harris now talking about tax cuts for income tax payers in next budget. Amazingly Pascal Donohue left all the bands alone despite inflation effectively dragging more people into the high tax bracket on relatively low incomes but still raised all the welfare rates. This was very short sighted even Pearce doherty of SF thought this was politically stupid but within a few months pascal had exited so obviously didnt care about the political consequences.
 
Looks like the fuel protests have gotten the message through to government that people are fed up paying high taxes not just on fuel but on everything in this country.
Simon harris now talking about tax cuts for income tax payers in next budget. Amazingly Pascal Donohue left all the bands alone despite inflation effectively dragging more people into the high tax bracket on relatively low incomes but still raised all the welfare rates. This was very short sighted even Pearce doherty of SF thought this was politically stupid but within a few months pascal had exited so obviously didnt care about the political consequences.
The problem with that is tax cuts are inflationary, as are fuel price increases.
 
Irish workers pay less tax than the EU average with rates closer to the US than high-tax EU economies such as Belgium, France and Germany, according to analysis by the OECD.

The so-called “tax wedge” for a single Irish worker on the average wage is 32pc – slightly more than the US and far less than Belgium’s 52.5pc, the data shows.

The tax wedge measures tax collected as a share of the entire wage package.

The marginal rate here is high, at 52pc, for an average worker – but the impact is softened by a large share of income that is lightly taxed or not taxed at all.
 
The marginal rate here is high, at 52pc, for an average worker
52.2% is the marginal rate for higher earning workers. The highest USC band applies to incomes over 70k.

The marginal rate is 47.2% for an average worker.
 
The simple message is middle Ireland pays for most and receives the least in return.

Maybe the penny is finally dropping with the govt. Many people are over the threshold for state assistance but not earning enough to live.

Not to make this a political post but we have gone to far left spending money we have not even earned as a country.
 
The simple message is middle Ireland pays for most and receives the least in return.

Maybe the penny is finally dropping with the govt. Many people are over the threshold for state assistance but not earning enough to live.

Not to make this a political post but we have gone to far left spending money we have not even earned as a country.
No they din't. Middle Ireland are, as a cohort, net recipients from the State.
generous tax free allowances coupled with a very generous welfare system and high marginal tax rates is a disincentive to work.
 
It remains to be seen if there'll be tax cuts, or just indexation.
We had a tax rise this year given there was no indexation in last year's budget.

They will give us indexation but not even enough to make up for missing last year and tell us it’s a tax cut. Opposition will call it a tax giveaway to the wealthy.

Media will eat it up and repeat the line.
 
Middle Ireland are, as a cohort, net recipients from the State.
generous tax free allowances coupled with a very generous welfare system and high marginal tax rates is a disincentive to work.

I guess the question is who is and how wide a band is middle Ireland.

I think a lot of figure on medium income are not reflective of what people are thinking, they include a student working two shifts a week supported by parents, retired people, unemployed people etc.

If we look at a specific demographic, two adult households with kids under 18. Medium after tax income is about 70k.

That includes householders where just one parent works, where one parent is full time and the other part time and households where no one works (about 10% I think). There’s also a certain amount of undeclared income not in there.

My point is that middle full time working Ireland is much higher than the stats often say and I’m not sure how well they do from the state.
 
If we look at a specific demographic, two adult households with kids under 18. Medium after tax income is about 70k.
Okay, that's 2 parents earning around €42,000 a year with total payroll deductions of around €14,000, assuming no pension contributions of other allowances.

If they have 2 kids in school then the State is spending significantly more that €14,000 educating them (€7,430 per primary school student and €9,816 per secondary school student as of 2021). They also get €3,360 (edit; figure corrected) in children's allowance so before the use a road, a hospital, a park or walk under a streetlight they are already significant net recipients from the State to the tune of somewhere between €10,00 and €15,000.

Even if they paid VAT on every cent they spent they would still be net recipients and that's not factoring in the value of the State Pension that they will receive.
 
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The problem with that is tax cuts are inflationary, as are fuel price increases.
So cutting the fuel taxes has now reduced the inflationary pressures, and thats what the EU was looking for governments to do aswell.
If tax cuts are inflationary ,what about welfare increases , they are also inflationary yet those are always justified because of inflation. Welfare increases in a high welfare spending state also act as disincentives to work which are another inflationary pressure because it reduces the productivity of the economy. People that could be working choose not to work or work less hours.
 
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