Bonus paid - wondering about the tax rate applied

Basically, if you're married with kids, you're doomed because your expenses skyrocket and kill your disposable income. If you're single with no kids, the taxman thinks you're rich enough to pay inflated tax rates. You can't win.

I still think it is a rip off, I'm sorry. Whilst I'm incredibly grateful for a bonus during these times, the tax rate applied is just appalling. My bonus was €1,310 and €652 landed on my account. That's more than 40%.

As much as I love Ireland, what is exactly we're getting from these high taxes aside from contributing to the greater community?

Also, somebody explain to me but each time I got to the dentist or get an eye-test, I'm told I don't quality for that one free PSRI consultation when I've been paying my taxes in the country since I finished college 5 years ago. I always have to pay full-price. I don't see any return on these taxes at all. Ireland is not the worst by any means, but I can see a strong imbalance between what we pay & what we get in return.

That said, I was offered a €55k job in Belgium last year and the net monthly income was roughly €2.3k. That's far worse.

I think I'll wind up moving to Dubai or some place at this rate. Cost of living might be very expensive, but I'm taking the tax-free aspect.
 
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LostinPhilly1 said:
Also, somebody explain to me but each time I got to the dentist or get an eye-test, I'm told I don't quality for that one free PSRI consultation when I've been paying my taxes in the country since I finished college 5 years ago. I always have to pay full-price. I don't see any return on these taxes at all. Ireland is not the worst by any means, but I can see a strong imbalance between what we pay & what we get in return.
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Treatment Benefit Scheme

The Treatment Benefit Scheme is a scheme run by the Department of Social Protection that helps pay for dental, optical and aural services for people with the required number of PRSI contributions.
www.citizensinformation.ie www.citizensinformation.ie


Contribution conditions
You must have paid Class A, E, P, H or S social insurance contributions.

The amount of social insurance you need depends on your age.

(2) Aged 21-24

Between these ages you may qualify if you have paid at least 39 contributions and

  • At least 39 paid or credited in the governing contribution year (2016 is the governing contribution year for claims made in 2018) or
  • 26 paid contributions in each of the second and third last contribution years. For claims made in 2018, the second last contribution year is 2016 and the third last contribution year is 2015.
(3) Aged 25-65

From the age of 25 onwards, you must have at least 260 paid contributions and

  • At least 39 paid or credited contributions in the governing contribution year (2016 is the governing contribution year for claims made in 2018) or
  • 26 paid contributions in each of the second and third last contribution years. For claims made in 2018, the second last contribution year is 2016 and the third last contribution year is 2015.
 
An employer can give an employee a voucher up to the value of €500 once per year. If you had taken the bonus as1 €500 voucher last week of December and another one first week of January together with €310 cash you would only have paid €150 tax.
 
Autofill said:
An employer can give an employee a voucher up to the value of €500 once per year. If you had taken the bonus as1 €500 voucher last week of December and another one first week of January together with €310 cash you would only have paid €150 tax.
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This is not how my employer operates.
 
LostinPhilly1 said:
I still think it is a rip off, I'm sorry. Whilst I'm incredibly grateful for a bonus during these times, the tax rate applied is just appalling. My bonus was €1,310 and €652 landed on my account. That's more than 40%.

As much as I love Ireland, what is exactly we're getting from these high taxes aside from contributing to the greater community?

That said, I was offered a €55k job in Belgium last year and the net monthly income was roughly €2.3k. That's far worse.

I think I'll wind up moving to Dubai or some place at this rate. Cost of living might be very expensive, but I'm taking the tax-free aspect.
Click to expand...
The tax wedge levied in Ireland really isn’t that big, in fact slightly below the OECD average http://www.oecd.org/ctp/tax-policy/taxing-wages-ireland.pdf. You're paying 26% on your €49k salary, what rate do you think it should be?

So what your fairly average amount of tax paid gets you is street lighting, road repairs, a functioning democracy, a legal system that enforces rights for women, fresh water, parks, public pension, free healthcare, social insurance to protect the poorer in society, fire service.... need I go on?

And yes there are many countries like Dubai where you can avoid having these privileges and pay less tax. The spectrum runs right down to various unfortunate African countries that levy no taxes and provide no centralised services.
 
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LostinPhilly1 said:
Basically, if you're married with kids, you're doomed because your expenses skyrocket and kill your disposable income. If you're single with no kids, the taxman thinks you're rich enough to pay inflated tax rates. You can't win.

I still think it is a rip off, I'm sorry. Whilst I'm incredibly grateful for a bonus during these times, the tax rate applied is just appalling. My bonus was €1,310 and €652 landed on my account. That's more than 40%.

As much as I love Ireland, what is exactly we're getting from these high taxes aside from contributing to the greater community?

Also, somebody explain to me but each time I got to the dentist or get an eye-test, I'm told I don't quality for that one free PSRI consultation when I've been paying my taxes in the country since I finished college 5 years ago. I always have to pay full-price. I don't see any return on these taxes at all. Ireland is not the worst by any means, but I can see a strong imbalance between what we pay & what we get in return.

That said, I was offered a €55k job in Belgium last year and the net monthly income was roughly €2.3k. That's far worse.

I think I'll wind up moving to Dubai or some place at this rate. Cost of living might be very expensive, but I'm taking the tax-free aspect.
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Old news I'm afraid.
PAYE Tax has been this high and higher up to 65% since 1970s. .
Pressume you availed of near free school and substantially reduced college course.. Like walking on lit footpaths in a secure location. All costs.
How about how to pay the front line staff staff, looking after your friends and relations during covid. Covid payments to those without jobs ring a bell?
All has to be paid.
Re Dubai, if your female I would give these slave labour places a wide berth. As a female you are viewed as a man's possessions like furniture. Stick to places which respect human rights rather than fumbling in the greasy till....
F.
 
Protocol said:
Any extra income earned by anybody is taxed at the person's marginal tax rate.

There are three marginal tax rates in Ireland: 0%, 20%, 40%.

Once a single person reaches 35,300, the MTR is 40%.

The entry point to the top MTR is very low in Ireland, very low.
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Entry point to start paying tax is very high too.

But a certain party calls foul if someone earning €40k pays low rate on everything.

I personally think that there should be a 30% middle rate to 50k, combined with a lower entry point to paying tax
 
Nah I have a better idea, just decrease the tax bracket for 40%. Instead of 35.3k limit (for singles) decrease it to 25k. Then most of the people will be aware of how excessive are the taxes. Most of the people are on 20% so not even aware of 40%. But no party will do that as it means they won't get votes next time.
 
Zenith63 said:
The tax wedge levied in Ireland really isn’t that big, in fact slightly below the OECD average http://www.oecd.org/ctp/tax-policy/taxing-wages-ireland.pdf. You're paying 26% on your €49k salary, what rate do you think it should be?

So what your fairly average amount of tax paid gets you is street lighting, road repairs, a functioning democracy, a legal system that enforces rights for women, fresh water, parks, public pension, free healthcare, social insurance to protect the poorer in society, fire service.... need I go on?

And yes there are many countries like Dubai where you can avoid having these privileges and pay less tax. The spectrum runs right down to various unfortunate African countries that levy no taxes and provide no centralised services.
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The problem is that the tax base is too narrow. I went onto the highest tax band as a third year apprentice in the early 90's when working about 60 pay hours a week. The same apprentice now pays no tax (although they are not allowed to work lots of overtime).
The highest tax band should not kick in until you are earning at least 1.5 times the average industrial wage and the lowest tax band should start at about €12k. The Universal Social Charge should be a Universal Social Charge... of else change the name to the Selective Social Charge.
It should be remembered that most people on the minimum wage are young and live in middle income households. We have FIS and other Welfare programs to help families on low incomes.
 
Zenith63 said:
So what your fairly average amount of tax paid gets you is street lighting, road repairs, a functioning democracy, a legal system that enforces rights for women, fresh water, parks, public pension, free healthcare, social insurance to protect the poorer in society, fire service.... need I go on?
Click to expand...

I will pick only one thing out of the list, and that's what I only care about: free healthcare. Good luck with that, that thing doesn't exist. I can't go to GP without paying (€60 atm) because I am not considered poor enough, I am not entitled to medical card, and besided I saw how my GP brushed off someone came in with medical card saying "sorry we don't have any free slots for medical card holders atm". And even more funny thing? When your GP asks you: would you like to go public or private? If you go public, it might take few months, in private it will take few days. That's what literally I have been told. And yeah I know a person that got a mail from public hospital saying: "Hello it's been a year, we were wondering if you are still interested with getting appointment from us".

Like I said, I just expect a better healthcare system with my paid taxes, and that thing does not exist in Ireland. Instead of waiting for 1 year for an appointment it's more affordable to go to A&E, pay €100 and get yourself checked. Because if you go to GP, then you pay, and if GP thinks you need to see specialist, then you either wait for a year, or pay more (around €100) to get yourself checked.
 
barbaros said:
I will pick only one thing out of the list, and that's what I only care about: free healthcare. Good luck with that, that thing doesn't exist. I can't go to GP without paying (€60 atm) because I am not considered poor enough, I am not entitled to medical card, and besided I saw how my GP brushed off someone came in with medical card saying "sorry we don't have any free slots for medical card holders atm". And even more funny thing? When your GP asks you: would you like to go public or private? If you go public, it might take few months, in private it will take few days. That's what literally I have been told. And yeah I know a person that got a mail from public hospital saying: "Hello it's been a year, we were wondering if you are still interested with getting appointment from us".

Like I said, I just expect a better healthcare system with my paid taxes, and that thing does not exist in Ireland. Instead of waiting for 1 year for an appointment it's more affordable to go to A&E, pay €100 and get yourself checked. Because if you go to GP, then you pay, and if GP thinks you need to see specialist, then you either wait for a year, or pay more (around €100) to get yourself checked.
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The length of the list was really the point I was trying to make. You're right to say "free healthcare" was sloppy wording on my part.
 
barbaros said:
I will pick only one thing out of the list, and that's what I only care about: free healthcare. Good luck with that, that thing doesn't exist. I can't go to GP without paying (€60 atm) because I am not considered poor enough, I am not entitled to medical card, and besided I saw how my GP brushed off someone came in with medical card saying "sorry we don't have any free slots for medical card holders atm". And even more funny thing? When your GP asks you: would you like to go public or private? If you go public, it might take few months, in private it will take few days. That's what literally I have been told. And yeah I know a person that got a mail from public hospital saying: "Hello it's been a year, we were wondering if you are still interested with getting appointment from us".

Like I said, I just expect a better healthcare system with my paid taxes, and that thing does not exist in Ireland. Instead of waiting for 1 year for an appointment it's more affordable to go to A&E, pay €100 and get yourself checked. Because if you go to GP, then you pay, and if GP thinks you need to see specialist, then you either wait for a year, or pay more (around €100) to get yourself checked.
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The problem there isn't taxes or funding; we spend more than enough on out Public Healthcare system. The problem is organisational incompetence and the massive waste that goes with it as well as the vested interest groups within the system that prevent change.
 
Sorry, I don't agree with spending more than enough on Public Healthcare system. According to whereyourmoneygoes.gov.ie/en/
Health should have more spendings than social protection.
 
barbaros said:
Sorry, I don't agree with spending more than enough on Public Healthcare system. According to whereyourmoneygoes.gov.ie/en/
Health should have more spendings than social protection.
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We are in the top 10 to 15 countries in the world for per capita spending on healthcare (Purchasing Power Parity adjusted) and have one of the youngest populations in the developed world. We spend 20% more than the EU average. Note that Private Health Insurance spending is 3 times the EU average. This acts as a direct and indirect subsidy of the Public System while simultaneously creating inequality of access. Read the key finding from this report for details. We spend enough, we just waste loads of it.
 
Reading the key findings from that report I'd get the successes the health system achieves are in spite of itself.

The good:
"life expectancy in Ireland has increased more rapidly than in nearly all EU countries since 2000 ... more than one year above EU average"
"generally effective in avoiding deaths from preventable causes"

The bad:
"but not all additional years are lived in good health"
"spends around one-fifth more on health per capita than the EU average"
"Ireland has largest market for duplicate insurance in the world"
"only western European country without universal access to primary care"
"low levels of hospital capacity" - really evident with covid
"inappropriate usage of some hospital resources" - I think this refers to keeping (older) patients in hospital because there is no where for them to go
"serious questions about coherence between education, training and employment policies of doctors"
 
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