Should higher earners pay a higher rate of tax?

[David Cochrane]

It was reported in yesterday's Irish Times that Sinn Féin would introduce a new tier of tax, resulting in those earning €100,000 or more to pay 50% tax.

Under the changes, those earning more than €100,000 a year would face a 50 per cent tax rate, while capital gains tax would also rise - but not by as much as the party has demanded previously.

What are people's thoughts, if you earn more, should you pay more tax, or does the fact that you already pay more tax by virtue of earning more make this suggestion anti-entrepreunerial.

I'd be interested to hear your thoughts.

[ryano]

There was an earlier discussion on this topic (warning: offensive language filter must have been on the blink that day).

[Trojanhorse]

The bracket should be higher than that. Simply because you would damage the income of a household that for instance had two parents working and perhaps a number of children to support. It should start at E250,000, that would make more sense.



But then again it is an SF economic policy.........

[Pidge]

I may have misunderstood the poll. Confused When you say a "higher rate of tax", do you mean a higher rate above current rates or are you talking about the entire concept of a progressive tax system?

Most people favour progressive taxation, and with good reason. It helps redistribute wealth nicely.

But an increase in these rates could prove costly. Higher rates have been shown to counterproductive sometimes. They can encourage people to take risks by evading tax. It also makes it less viable for high earners to spend most of their time in Ireland which may mean that they leave for more than half of the year. Then the exchequer collects nothing!

High tax rates may also discourage highly-paid executives from locating in Ireland.

[Pidge]

There was an earlier discussion on this topic (warning: offensive language filter must have been on the blink that day).

But this one's got a fancy poll!!!

[ryano]

But this one's got a fancy poll!!!

Oh, I know, it's a great improvement, I was just suggesting that the other thread is useful background reading. As a wise man once said, those who do not learn from previous threads are doomed to repeat them.

[SAOIRSE GO JOE]

I think it is absolutely right that the higher earners have to pay a higher rate of tax. I would say that people earning more than 100, 000 should pay 50%. However, I can see the problems. If only one person in the household is working and earning 100,000 they could potentially, be worse off or nearly as badly off as a couple each earning 30,000. I'm sure should this be prblematic it will be reviewed, but I certainly don't think the ceiling should be as high as 250,000.

[Libero]

What Pidge said. I support progressive taxation but not necessarily an SF-style hike in rates.
Maybe the question could be reworded...?

[ryano]

What Pidge said. I support progressive taxation but not necessarily an SF-style hike in rates.
Maybe the question could be reworded...?

I agree - at present it could be taken to be a choice between a flat tax and progressive taxation, rather than a choice between the current tax bands and the option of adding an additional higher tax band.

[hiker]

I'm gonna go out on a limb here and say that Income Tax should be abolished.

Yeah.yeah, I know, who's going to pay for this, that and dudder.

Well if one party can propose 50% then another can propose 0%.