middle income tax payers in Ireland are paying alot more tax than is fair and compared to our international peers.
Over one million workers pay top rate of PAYE, not just the high earners
At least 1.1 million people – representing a majority of Ireland’s full-time workers – are hit with the highest, 40pc rate of PAYE, new figures from Revenue show.www.independent.ie
The thrust of the media debates in ireland seems to be on spending and welfare increases across the board and not enough attention is being paid to the fact that middle income tax payers in Ireland are paying alot more tax than is fair and compared to our international peers.
The fact that the government has not raised the tax bands in line with inflation since the financial crash has meant that more and more workers are now brought into the higher income tax band and this is now over 50% of tax payers. This is extraordinary and unfair and is resulting in people questioning why they are going to work every day when then they are targetted by the green taxes on fuel etc.
The balance has swung too far in Ireland with regard to taxes welfare spending and high spending every where else and not enough attention is being paid to the workers who are keeping this whole system going and are fed up with paying for everything. Whats more extraordinary is that no political party seems to want to represent this electorate the traditional bedrock of society
the only people who can complain are childless single people earning €100k+
An alternative viewpoint...Over 1 million tax payers now paying tax at the higher rate
Over 1 million very well paid workers in Ireland
Where Ireland stands out is the very low entry point to the 48.5% marginal income tax rate.
To be paying nearly 50% MTR on extra earnings below median earnings is very unusual.
Maybe the median salary is simply high in Ireland?Exactly thats the main point that people are hitting the high tax bracket on earnings below the median salary in Ireland.
Is there evidence to support this? All I've seen recently is how we're at record employment rates with unemployment close to record lows.Its not just the taxation that is extraordinary but the very high welfare rates which means it is difficult to get people to work in the lower paid jobs ...
Apart from being out nearest neighbour is there a good reason to aspire to the UK taxation model? The Truss mini budget will be held up for many years as shinning example of what not to do.In the UK only 15% of tax payers are paying tax at the higher rate, here it is 50% that statistic alone is extraordinary.
While you're right that the multinational sector skews the numbers Ireland is still above the EU average. While there was a decline I wouldn't overstate it.Irelands productivity is reduced ( multinational productivity aside as this is seperate to what is happening in the domestic economy),
There is no alternative now but to raise the higher tax bracket to at least 43K this year to take it above the median salary and then another 3K in 2025 to 46K to at least bring Ireland back in line with its european compatriiots..
the government wasn't too worried about inflation when they brought in MUP and returned the fuel duties along with VAT and carbon taxes. The fact is that the tax bands should have been increased long ago it is now effectively a legacy issue that needs to be rectified immediately. It is a disincentive to work and is reducing productivity as workers dont want to do extra work because it is too heavily taxedWhile I would love a few extra euros in my pocket I also appreciate that given the economy is roaring along a string of tax reductions will likely only add to/fuel inflation and ultimately undermine competitivenes
Can you support your claim with some evidence? Like I said above everything I've seen would not lead me to this conclusion.It is a disincentive to work and is reducing productivity as workers dont want to do extra work because it is too heavily taxed
The main problem with the Kwarteng mini-budget was not its tax cuts at a time when the UK public finances were lurching into crisis (a problem not faced right now by Minister McGrath) but a whole array of unfinanced spending increases.Apart from being out nearest neighbour is there a good reason to aspire to the UK taxation model? The Truss mini budget will be held up for many years as shinning example of what not to do.
Every analysis piece (FT, BBC, Guardian, Independent, The Times, etc.) said it was indeed the proposal of unfunded tax cuts of over £45bn that made the markets balk.The main problem with the Kwarteng mini-budget was not its tax cuts at a time when the UK public finances were lurching into crisis (a problem not faced right now by Minister McGrath) but a whole array of unfinanced spending increases.
That may be so, but Truss' proposal for the government to underwrite frozen energy prices, at an estimated cost of £100 billion annually, on its own easily exceeded the cost of the proposed tax cuts. And that doesn't count a number of other spending increases promised in the mini-budget.Every analysis piece (FT, BBC, Guardian, Independent, The Times, etc.) said it was indeed the proposal of unfunded tax cuts of over £45bn that made the markets balk.
All is not what it seems when it comes to our workforce!Is there evidence to support this? All I've seen recently is how we're at record employment rates with unemployment close to record lows.
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