Like the contributory pension?
Like the contributory pension?some people had very advantageous prsi benefits granted to them that they didn't contribute to fully ,
Sorry, I don't understand that point.And 10 per cent or less of them have an income that doesn't represent double what a pensioners gets.
More like €750k but yes, that would mean a contribution of around €150 a week (net after tax reduction of around €75 a week) each week for the last 30 years.They would also need a pension pot of about 800k, which does require a serious effort
All income is taxable. Some benefits aren't.COAP is a taxable benefit.
Only 10 per cent of workers are on the minimum wage. On the minimum wage, a worker earns double the state pension. So only 10 per cent of less of workers have an income representing less than double what a state pensioner receive.Sorry, I don't understand that point.
And most of those are young and living in middle to high income households.Only 10 per cent of workers are on the minimum wage. On the minimum wage, a worker earns double the state pension. So only 10 per cent of less of workers have an income representing less than double what a state pensioner receive.
How? Anyone living on the State pension doesn't pay any tax.COAP is a taxable benefit.
Paying it gross is a government stealth trick.
They are paying tax on their income above the tax exempt threshold. If they are living on the State pension alone they are below that threshold and so pay no tax. If they have additional income which means their total income exceeds the threshold then they pay tax on their total income.The rich elderly people you referred to pay income tax on their COAP.
Saying that the COAP sits on top of their other income and so is the bit that is taxed at the marginal rate is as illogical as saying the opposite.They are most likely taxed at 40% on their contributory pension.
The rich elderly people you referred to pay income tax on their COAP.
But tax credits are automatically adjusted/reduced as needed to effectively collect tax where appropriate?Its paid gross.
I'm no spring chicken and my effective tax rate is well in excess of 40%.From about €50k of income (i.e. the point at which the COAP is taxed @40%), the effective income tax rate is 17% versus. 21% for the spring chickens. With the age tax credit and no PRSI, they will pay 20% less tax than the worker.
To what are you referring?The State should not take money from poor people and give it to rich people just because those rich people are old.
With respect that is a ridiculous thing to say. Income is taxable. Pensions are income. Ergo pensions are taxable.The government stealth trick of paying COAP gross is obviously working. People seem to be fooled.