ESRI report on effective tax rates in Ireland

NoRegretsCoyote

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There is not much surprising in this. Ireland tax corporate profits and personal income lower than elsewhere. Consumption taxes are high (VAT, VRT, excise).

High consumption taxes are a policy choice and is one of the reasons that consumer prices are high compared to elsewhere. A small market and lack of competition in certain sectors is another.
 

Purple

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There is not much surprising in this. Ireland tax corporate profits and personal income lower than elsewhere. Consumption taxes are high (VAT, VRT, excise).

High consumption taxes are a policy choice and is one of the reasons that consumer prices are high compared to elsewhere. A small market and lack of competition in certain sectors is another.
The marginal tax rate on labour is very high here, which is an indicator of how narrow out tax base is.
 

Purple

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I expected bigger difference on consumption taxes.
Consumption taxes include indirect taxes. The Excel sheet gives them as "Consumption ETR including indirect taxes". We have very few (no water charges, extremely low property taxes etc) so that brings it down.
 

odyssey06

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Consumption taxes include indirect taxes. The Excel sheet gives them as "Consumption ETR including indirect taxes". We have very few (no water charges, extremely low property taxes etc) so that brings it down.

Property taxes would affect it, hadn't considered that.

On the other hand, we have a lot of indirect taxes on vehicles, fuel, alcohol.

Water charges wouldn't be a tax though would they... part of the reason it turned out so messy?
Unless you mean in other countries indirect taxation funds it?
For comparison, I don't think electricity prices would be included, but maybe PSO levies would be? And insurance levies?
 

Purple

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Property taxes would affect it, hadn't considered that.

On the other hand, we have a lot of indirect taxes on vehicles, fuel, alcohol.

Water charges wouldn't be a tax though would they... part of the reason it turned out so messy?
Unless you mean in other countries indirect taxation funds it?
For comparison, I don't think electricity prices would be included, but maybe PSO levies would be? And insurance levies?
Good point on water charges.
 

Paul O Mahoney

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" Effective tax rate" is an oxymoron add in PRSI and USC and that becomes the "Effective tax rate" .

Then as others have mentioned all the indirect taxes.

This is a term that really gets me, its as if they are trying to sell a very clear lie.
ut
Its up there with our GDP is reduced by 20% due to tax repatriation by multi nationals , most multi national companies don't do repatriation anymore as the tax code at home is higher, I know Trump tried to get the US ones to cough up, a few did, but our CT receipts rose
 
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Protocol

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Its up there with our GDP is reduced by 20% due to tax repatriation by multi nationals , most multi national companies don't do repatriation anymore as the tax code at home is higher, I know Trump tried to get the US ones to cough up, a few did, but our CT receipts rose

Please that the difference between GDP and GNP is due to income flows, yes, but note that the incomes do not have to return to the parent country.

Where they go is not relevant, they could stay in the AIB in Cork city - the key issue is that we don't own that income.
 

Paul O Mahoney

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USC is an income tax, and of course is included in the analysis.

Social contributions are also measured in the article.
Maybe quoted in the article but on our form 11 not included. ERSI aren't the revenue and its the revenue that matters.
 

Protocol

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The article aims to measure effective tax rates here, and so obviously all relevant taxes are included.

How workers in practice pay each tax (annually, PAYE, to the Revenue, to the Collector-General) is not directly relevant.
 
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