Is my effective marginal tax rate closer to 85%?

[Purple]

Anyway, back on topic; 40% of homes are bought for cash in Ireland, with less than 40% of homes in Dublin sold to individual buyers.

Wealth distribution in Ireland (source)

• Under 35 years old: €23,400

• 35 to 44 years old: €151,400

• 55 to 64 years old: €336,800 (The wealth peak before retirement)

• Over 65 years old: €404,200 (The highest median wealth of any age group

Households where the reference person was aged under 35 were the only age group to see a fall in median net wealth from €27,600 in 2020 to €23,400 in 2023, whereas those aged 65 and over had a value of €404,200

Retired households have nearly €300 Billion in assets which, for the most part, will be passed down to their children.The vast majority of that will be untaxed.

 

[Fortune]

Retired households have nearly €300 Billion in assets which, for the most part, will be passed down to their children

I occasionally wonder how much of this will go to the government under Fair Deal.

 

[Purple]

I occasionally wonder how much of this will go to the government under Fair Deal.

Is that how much will go on the small proportion of nursing home care rich people will actually have to pay for themselves, after the bulk of the cost is foisted on the the exchequer?
That's yet another good example of a subsidy for the wealthy.

 

[TomEdison]

I occasionally wonder how much of this will go to the government under Fair Deal.

None of it, essentially. In Fair Deal the government is merely an intermediary facilitating the transfer of wealth from the elderly to residential home providers in partial payment for the care that the residential home providers give to the elderly.

 

[Fortune]

You may have guessed I'm not familiar with the basic workings of the fair deal scheme.

 

[Purple]

None of it, essentially. In Fair Deal the government is merely an intermediary facilitating the transfer of wealth from the elderly to residential home providers in partial payment for the care that the residential home providers give to the elderly.

Yes, on average the exchequer funds 70% of nursing home costs. The resident pays 80% f their assessable income and 7.5% of the value of their assets (half of both in the case of a couple), the asset value payment is capped at 3 years worth of payments. Worst case scenario the kids still get 77.5% of the value of their home. Basically the State subsidises the value of the inheritance they leave to their children.