SF alternative Budget 2023 - tax proposals

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Protocol

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See page 46 here:

I have a few questions, see below.

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17.6 - this is a cut in income to the local councils, so it will have to be made up somewhere else.
17.10 - why newspapers?


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17.12 - I think this happens in the UK?
17.13 - this means a 55% marginal income tax rate: 40 + 4 PRSI + 8 USC + 3 extra
17.15 - the employee earnings limit at 60k - does that mean you can only get tax relief on income up to 60k, surely that would hit thousands of workers, including many public servants?
17.19 - wealth tax difficult to implement in practice
17.22 - stamp duties are bad taxes, but 12.5% is crazy, surely??



The following are not costed:

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DWT at 33% is just a cashflow effect, surely, as when people do their tax returns, they will either get a rebate or pay more tax on the dividends.
No. 6 = what tax-break?
 
Protocol said:
No. 6 = what tax-break?
Click to expand...

All companies within the charge to Irish tax (not just the banks) can avail of provisions in tax law to:

- offset current trading losses against profits (if there were any) of the preceding accounting period for corporation tax purposes, or
- utilise losses against corporation tax on non trading income on a value basis, or
- carry forward losses to set against profits of future years.

Banks lost so much money on trackers and bad lending etc. that they are able to use them against the profits they are making now for corporation tax purposes i.e. if a bank makes a profit this year of €500m and is carrying forward losses of €5bn, it can utilise €500m of the €5bn loss to set against the €500m profit and therefore its net trading income subject to corporation tax @ 12.50% = nil. It carries forward €4.5bn of trading losses to the following year until all the loss is used up.
 
17.24 - how high would a pollution tax on private jets need to be to raise 18m a year. I have no idea what kind of private jet traffic comes in and out of ireland every year, but to raise 18 mil in tax from it, suggests a hell of a lot more than I thought. I would imagine the traffic would reduce significantly if this goes through.
 
Yes, I know about carrying forward past losses against CT.

SF seem to suggest, by their language, that banks get a special tax-break, which of course, they don't.

How could a Govt abolish the treatment of past losses for one type of firm, and not for others?
 
Protocol said:
SF seem to suggest, by their language, that banks get a special tax-break, which of course, they don't.
Click to expand...

Their language is more headline grabbing. Isn't that the point of a political manifesto?

Protocol said:
How could a Govt abolish the treatment of past losses for one type of firm, and not for others?
Click to expand...

Prior to 2014, there was a restriction on loss utilisation by NAMA participating institutions:

www.oireachtas.ie

Corporation Tax Regime

Corporation Tax Regime Dáil Éireann Debate, Wednesday - 11 July 2018
www.oireachtas.ie
 
"Do not proceed with carbon tax increases" is desperately cynical.

The whole thing seems pretty anaemic and far from the radical changes that SF (or indeed their critics) claim they will bring in.
 
It is all pie in the sky. The big problem is the government's reliance on Corporation Tax, which is effectivly the same as the SF Magic Money Tree.

17.13 We already have that (USC 11%) for self employed, except the threshold is 100k, rather than 140k.

Medical Card exemptions cause a huge issue, as under EU laws everyone who qualifies for the equivalent in a EU country is also exempt.

There is basic stuff they forgot, like increasing PRSI Class S to the same levels as Class A, as Class S now qualify for the same benefits.
 
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