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 Ireland's Progressive Income Tax Regime

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PostSubject: Ireland's Progressive Income Tax Regime   Ireland's Progressive Income Tax Regime EmptyTue Feb 10, 2009 2:38 pm

Link - Sunday Business Post - Tax is ‘too dependent’ on very high earners

"....Statistics from the Revenue Commissioners show that, contrary to some assertions, Irish income tax is highly progressive. Current figures show that half of all income tax - €6.5 billion - is paid by the top 6.5 per cent of taxpayers.

A third of all income tax is paid by the top 2.5 per cent of taxpayers, numbering just 60,000 out of the total 2.4 million income earners. Some 38 per cent of all income earners are under the tax threshold and pay no income tax at all.
....

Speaking on condition of anonymity, officials said that the income tax base had become too dependent on a relatively small number of high earners. ‘‘If a few thousand of them left or stopped earning, it would have serious consequences,” said one source.

He said that this was one of the reasons why the government held out against union demands for higher taxes.

Another source said that the current structure would have to be changed, placing more of the burden on lower and middle income earners, although this would be politically difficult."
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PostSubject: Re: Ireland's Progressive Income Tax Regime   Ireland's Progressive Income Tax Regime EmptyWed Feb 11, 2009 12:04 am

Just noticed this Zhou. How much of all income do the top 2.5 % have, I wonder, and who are they? This is all private income tax, not corporate.
The article gives very little information other than the fact that we are going to be asked to pay more tax. It mentions in passing that a small number of very high earners have used tax incentives to avoid paying any substantial taxes. This would be well worth looking in to in some more depth.

Its the indirect taxation that hits the poor - like our very high VAT. Would you consider the 300 million a year that Government makes from the ESB to be a form of tax?
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