"We should fix our roof while the sun is shining — instead we’re making it rain"

Brendan Burgess

Founder
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38,532
A good article by Cormac Lucey in the Sunday Times which you can read on his website:

http://cormaclucey.blogspot.com/2019/05/we-should-fix-our-roof-while-sun-is.html


While attention has focused on the large expansion in corporation tax receipts, the real story over the past decade has been the growth in income tax. In 2007, income taxes accounted for 29% of the total tax take: this year they are expected to contribute 40%. In the same period, the corporation tax proportion grew from 14% to 16% .


Are public commentators who howl about a growing dependence on corporation tax receipts, while also ignoring an overweening reliance on income tax receipts, unaware of the facts or simply choosing to ignore them?

...

The newest arrival to the flourishing kennel of fiscal watchdogs is the Parliamentary Budget Office. It crisply summarised the stability of the public finances as follows: “Prudential fiscal policymaking would suggest that it is desirable to have a broad tax base, focused on sustainable revenue sources. Not only is the corporation tax base heavily dependent on a small number of foreign-owned multinationals, but their employees are also responsible for approximately 24% of all income tax/USC/PRSI revenue. Similarly, income tax shows a significant degree of concentration with 13% of total income tax units (those with gross income above €70,000) accounting for 64% of total income tax paid (including USC) in 2016.”
 

Firefly

Frequent Poster
Messages
3,066
In 2007, income taxes accounted for 29% of the total tax take: this year they are expected to contribute 40%. .
In 2007 the government was pulling in huge property related taxes - stamp duty, CGT & VAT though. If these taxes were adjusted for what they bring in today, then I would expect income taxes as a % to be closer to the 40% mark in 2007 also.
 

Purple

Frequent Poster
Messages
9,085
In 2007 the government was pulling in huge property related taxes - stamp duty, CGT & VAT though. If these taxes were adjusted for what they bring in today, then I would expect income taxes as a % to be closer to the 40% mark in 2007 also.
Good point.
 

WolfeTone

Registered User
Messages
252
Its definitely an interesting article. He should make suggestions as to what he thinks needs to done.
I have to say that I was referred to hospital for a MRI scan through the public system earlier this year. I was told by my GP that could be waiting months but I got an appointment within 3 weeks.
Also, my nephew is starting secondary school next September and the school is newly built, the resources are fantastic. Recording studios, music and film with great equipment, after school sports and drama etc.
Also where I live there are currently two new road upgrades (badly needed) in construction.
So perhaps money being spent is filtering through in better services?
 

Purple

Frequent Poster
Messages
9,085
Its definitely an interesting article. He should make suggestions as to what he thinks needs to done.
I have to say that I was referred to hospital for a MRI scan through the public system earlier this year. I was told by my GP that could be waiting months but I got an appointment within 3 weeks.
Also, my nephew is starting secondary school next September and the school is newly built, the resources are fantastic. Recording studios, music and film with great equipment, after school sports and drama etc.
Also where I live there are currently two new road upgrades (badly needed) in construction.
So perhaps money being spent is filtering through in better services?
If the Public Sector Unions have their way all that money will be diverted into pay increased for their members, just like in the good old days. It is remarkable that a minority government have been able to resist those power vested interest groups for so long and generally act in the public interest. I can't see it lasting though; the looney left are at the gate and on the ramparts and there is no shortage of useful idiots to join their ranks.
 
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