Tax Rate in Ireland Too High

[Watcher1]

I presume this is the forum for this topic.

Sorry I have no link, looked for the article on-line but no luck. If you want to get the reference it is an article in the Business Section of todays IT.

Basically, the guy in Havoc (high profile games developer) has said that Irish tax rates are probably too high for him to locate some or all of his staff. He was talking about personal tax rates and admitted that it will be part of the decision as to where he will locate new staff for a new game/division he is developing. He will let his staff decide. His underlying thoughts, by reading between the lines, is that Ireland may lose out on high end jobs because our tax rate is too high.

So there you have it. Thoughts?

[thedudeinthehat]

sorry but all the studies show that we are in fact under taxed- with the result that we are amongst the most unequal of developed societies.

[Watcher1]

I'm just reporting what an employer located in different countries is saying and his impressions of the tax system in Ireland.

[Conor]

Havok may locate new team of developers in Dublin - The Irish Times - Fri, May 22, 2009

However, David O’Meara, managing director of the firm which makes special effects tools for the games and movie industries, cautions that the effective tax rate of 55 per cent in Ireland does not make it an attractive location for top software developers.

“We need world-class talent so that means we either go to the universities or get it from abroad,” said Mr O’Meara. “This talent is mobile so a high tax rate here makes California more attractive to them. Effectively we will let our staff decide where we locate.”

Although the company has no intentions of moving out of Dublin, where it has its headquarters and a development team in the Digital Hub, Mr O’Meara says the high rate of personal tax rates needs to be considered if the Government is serious about building a smart economy.

[atlantic]

High tax no incentive to work,read between the lines.The only people that like high taxation are PS/CS ,statists and government so they can soak dry the economy.

[drkpower]

sorry but all the studies show that we are in fact under taxed- with the result that we are amongst the most unequal of developed societies.

But society should be "unequal". Those who work hard should have a better quality of life than those who do not. That makes perfect sense.

It is in noone's interests to make everyone equal. Disincentivising the best and brightest, the wealth-creators by taxing them excessively ultimately hits everybody.

What we need to focus on (and what we do not have) is "equality of oppurtunity", particularly a top notch education system. Naturally, you can never have absolute equality but we need to focus the cash injection on "oppurtunity" rather than in giving large social welfare payments to the medium-long term unemployed.

But if the oppurtunity is not taken ,tough sh!t - we cannot keep subsidising and supporting those who make little effort to support themselves.

[KingKane]

Havok may locate new team of developers in Dublin - The Irish Times - Fri, May 22, 2009

Some how I think the weather and cost of living in the US might be more of an incentive to be based over there.

By European standards (which after all is where we are located) our tax take isn't normally that high.

[bormotello]

It depends how you will look on it
If you will compare tax-to-GDP ratio, you will see that Ireland is undertaxed
But if you will take in account that 75% of GDP is coming from FDI, which came here only for lower corporate tax, you will see that tax take is to high
Plus if you will not look on Eurostats charts, but instead you will find tax calculators for different countries, you will see that Ireland is already in top league

I understand why R&D companies are leaving Ireland.
Greed of public workers is pushing government for continues increase of taxes and Ireland becomes more and more less attractive place for investments.