gnf_ireland
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Those on around the 55k mark (as defined by the Institute of Taxation), and pay more tax than Sweden, Switzerland, UK, USA or Spain, paying 49.5% of their income in taxes & levies. They take home around 6400 a month between them.
I don't understand the arithmetic here. 6,400/month x 12 = 76.8k which is 70% of 2 x 55k. Where does the 49.5% tax figure come from? -- it looks like only 30%.
Maybe I read the Institute of Taxation report incorrectly. I read it as individuals/couples making 55k a year each. Maybe it just referred to an individual making 55k and excludes couples/families.€55,000 x 2 earners is a single tax case on €110,000 a year. That's not the middle by any count.
Ok, I can accept this regarding taxation - this is why I considered the squeezed middle from a taxation point of view to be double thatThe "Squeezed Middle"; a couple with a few kids on a combined income of €55,000 , will pay about €3,500 in total payroll taxes and will get €3,360 back in child Benefit. That's a net payment of around €140 a year or €2.70 a week. I don't think that can be called squeezed. I'd call it grossly under taxed.
Without getting into details, I do not fall into either definition of the Squeezed Middle, so its not related to me personally.If you think you are being hit hard try being a single income earner on that salary. Now they really are hit hard.
But the big problem is the generosity of our social welfare system.
Brendan
Apologies, this was taken from 2016 and the USC has dropped by 0.5% since that, so its 49%Nobody in Ireland pays 49.5% effective tax rate.
But many people face a 50% marginal tax rate.
Fully accept this statement.It's MTR that are crazy high for ordinary workers in Ireland, not ATRs.
I think the key here (in my personal view) is compared to the benefits they get. There are those who are net contributors to the system and those who are net receivers from the system. I believe there are too many net receivers for the amount of contributorsThey are undertaxed compared to other countries, and compared to the benefits they get.
FG is meant to be speaking on their behalf.
Absolutely. The average annual salary is around 38k to my knowledge. There is no way someone on an average salary should be paying the highest rate of tax (excluding USC).The 50% approx top MTR is not too high, it's fairly normal to have 50% top MTRs.
It's just that it kicks in so early, at 33,800.
The average annual salary is around 38k to my knowledge. There is no way someone on an average salary should be paying the highest rate of tax (excluding USC).
Years ago people emigrated if they found themselves out of work, now people are emigrating for a better life - higher wages, lower cost of living and being able to buy their own home.
And this is a whole different discussion....Of course, the fact that we have borrowed over 100bn (not including the bank bailout) since 2008 means we are in effect snookered.
Obviously Brendan, the tax system that best suits meIf you were earning €38k , which of the following would you prefer?
The 50% approx top MTR is not too high, it's fairly normal to have 50% top MTRs.
It's just that it kicks in so early, at 33,800.
So what we need are more bands and rates to make the system smoother.
I propose 20% - 30% - 40% - 50%.
Let the 50% start at 100k, not 33,800.
And this is a whole different discussion....
The government appear to have no clue about the impact of robotics and automation and the impact this will have on jobs in the country. You just have to look at bank branches where the move to automation is pretty evident. Same if you check in luggage with Aer Lingus - you don't need to speak to an individual to do it. This is only starting, so can only imagine what it will be like in 10-15 years
My parents earn 49k approx, and pay under 10% direct taxes.
They get:
two medical cards
two free travel passes
free TV licence
35pm / 420 pa offf their elec bill
They are undertaxed compared to other countries, and compared to the benefits they get.
You raise a very valid general point "Who speaks for the workers?"
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