DIRT is a tax on the wealthy, those people who have excess capital which they keep in the form of cash. More particularly it is a tax on the old as they are the ones who have the excess capital, mainly acquired through the capital inflation of their pensions and homes rather than through earned income.DIRT is a tax on middle people, the poorest save nothing and aim to draw the maximum from the state, the wealthy have complex investment provisions. Bu even if relatively poor people save something, there is no allowance or threshold for DIRT.
Thanks for posting this, interesting data. What it seems to show proportionately as doesn't give absolute figures is that Ireland has relatively high savings (proportionately) relatively low investments in shares etc and average or a bit above medium levels of pension investments.View attachment 8026
Households - statistics on financial assets and liabilities - Statistics Explained
Statistics that focus on the annual stock of financial assets and liabilities held by households in the European Union (EU).ec.europa.eu
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Household financial assets
Financial assets, such as saving depostis, investments in equity, shares and bonds, form an important part of overall wealth of households, and are an important source of revenue, either through the sales of these assets, or as a source of property income (such as interest and dividends).data.oecd.org
As I said, the truly wealthy do not keep their wealth in the PTSB. The capital appreciation of your home is of no great use, the house remains the same size and you live in it, it does not justify DIRT. The proper tax on appreciating houses is inheritance tax. DIRT may well affect people near or at retirement, as a very long term investment does not suit. Either way the tax should only be on a real gain and not one less than inflation.DIRT is a tax on the wealthy, those people who have excess capital which they keep in the form of cash. More particularly it is a tax on the old as they are the ones who have the excess capital, mainly acquired through the capital inflation of their pensions and homes rather than through earned income.
Yes they do. If you own a house worth a million with no mortgage , have a pension well above the average industrial wage and have savings over a hundred thousand then you are truly wealthy. There are tens of thousands of people in that position in this country.As I said, the truly wealthy do not keep their wealth in the PTSB.
You can choose to sell it and downsize. Either way it’s wealth. It’s up to you what you choose to do with it. In fact it’s unearned wealth so why do you think it should be taxed less than earned wealth?The capital appreciation of your home is of no great use, the house remains the same size and you live in it,
No, that’s inheritance tax. You don’t pay that.it does not justify DIRT. The proper tax on appreciating houses is inheritance tax.
Should I come tax work the same way? If I warn €250k a year and inflation is 6% should my tax bill be reduced by €12k?DIRT may well affect people near or at retirement, as a very long term investment does not suit. Either way the tax should only be on a real gain and not one less than inflation.
Not a stupid idea. In the budget the income tax bands are in fact usually adjusted to accommodate inflation so that people do not pay more just because of inflation.Should I come tax work the same way? If I warn €250k a year and inflation is 6% should my tax bill be reduced by €12k?
Stupid idea? Yes, I though so.
The band increase only affects a small portion of income though, so a very different prospect.Not a stupid idea. In the budget the income tax bands are in fact usually adjusted to accommodate inflation so that people do not pay more just because of inflation.
They are way behind inflation because the government barely raised them at all for a decade, they only started playing catch up in last 2 budgets ,we have one of lowest entry levels to the high tax bracket despite the government continuing to pull in vast sums in corporate taxNot a stupid idea. In the budget the income tax bands are in fact usually adjusted to accommodate inflation so that people do not pay more just because of inflation.
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