Widening tax net for low paid workers but not for higher paid workers ?

[mmrebel]

Minister for Finance Brian Lenihan today refused to rule out bringing more low income earners in to the tax net, but said that any potential economic recovery would likely be stifled by further large increases in taxation by the Government.

Speaking at the inaugural International Financial Services Summit in the Four Seasons Hotel in Dublin, Mr Lenihan would not be drawn on whether the Government will consider widening the tax bracket to include more low income earners, preferring to reiterate that higher tax rates often prove a deterrent to work.

“Ireland has a relatively low rate of tax on low income earners, half of which are outside of the tax bracket, and it is an issue which we will have to look at in the future,” he said.

“However, further tax increases by the Government will not increase the incentive to work, and it must be remembered that it was Government-sponsored incentives to work that contributed to economic growth in the 90s,” he said. “You cannot tax yourself out of a recession.”

Mr Lenihan rejected suggestions that the Government had reversed its stance over the balance between tax increases and spending cuts announced in the 2010 fiscal adjustments last April.

“I made it very clear when speaking on the fiscal adjustment programme that the figure for tax was a maximum, and that the figure for expenditure was a minimum, so seeking the greater balance from expenditure does not represent a change in government policy,” he said.
Lenihan hints at widening tax net for low paid workers - The Irish Times - Thu, Nov 05, 2009

He keeps talking about widening the tax band to take in low earners but not for higher earners ?

[toughbutfair]

He keeps talking about widening the tax band to take in low earners but not for higher earners ?

So what, he is correct!

How can you have so many people making no financial contribution? what is wrong with expecting people to pay money towards the state via income tax? - too many charity cases!

The system is currently biased towards the low paid and it is right that their free ride comes to an end. If these hundreds of thousands of people start to pay a bit it would help.

We should abolish tax credits, and have a 10% start off rate of tax.

[ifreannach]

So what, he is correct!

How can you have so many people making no financial contribution? what is wrong with expecting people to pay money towards the state via income tax? - too many charity cases!

The system is currently biased towards the low paid and it is right that their free ride comes to an end. If these hundreds of thousands of people start to pay a bit it would help.

We should abolish tax credits, and have a 10% start off rate of tax.

christ, you do post some utter ********************e, lenihan has never been right in his life kinda like you i suppose

[toughbutfair]

christ, you do post some utter ********************e, lenihan has never been right in his life kinda like you i suppose

If you are educated and can make a point instead of just insulting people with an opposing view, then feel free to do so.

We are neither in a playground nor 6 years old, so make an intellectual point if you have one.

[wysiwyg]

Of course he is going to lower the limit at which he brings people into the tax net, and just like the justification for lowering public service pay and welfare benefits, he will say that people have experienced deflation and therefore can begin paying tax without any depreciating effects on their standards of living.

He will also reduce the level at which you move from paying 20% tax to 41% tax, which means that while "headline tax rates" won't change, "real tax paid" will increase. A nice little trick don't you think.

We're all in for a cut next month, may as well prepare for it.

[toughbutfair]

Of course he is going to lower the limit at which he brings people into the tax net, and just like the justification for lowering public service pay and welfare benefits, he will say that people have experienced deflation and therefore can begin paying tax without any depreciating effects on their standards of living.

He will also reduce the level at which you move from paying 20% tax to 41% tax, which means that while "headline tax rates" won't change, "real tax paid" will increase. A nice little trick don't you think.

We're all in for a cut next month, may as well prepare for it.

I have suspected for a while he may say "no increase in tax rates" as opposed to "No increase in tax"

[ifreannach]

[QUOTE=toughbutfair;2256210]So what, he is correct!

no he is not

How can you have so many people making no financial contribution?they cannot afford it

what is wrong with expecting people to pay money towards the state via income tax? wasteful government spending FAS etc - too many charity cases! horsing industry?

The system is currently biased towards the low paid and it is right that their free ride comes to an end. show me the proof of that statement

If these hundreds of thousands of people start to pay a bit it would help. they already pay through stealth taxes

We should abolish tax credits, and have a 10% start off rate of tax. abolish te tax creditis for who exactly and 10% start off rate for who

[Rich OC]

I have suspected for a while he may say "no increase in tax rates" as opposed to "No increase in tax"

Yeah, they are still doing politics as usual. It is a sure sign that they are completely incapable of doing what needs to be done. If you are going to take money from people at least have the nerve to tell them to their faces.

[KingKane]

Minister for Finance Brian Lenihan today refused to rule out bringing more low income earners in to the tax net, but said that any potential economic recovery would likely be stifled by further large increases in taxation by the Government.

Speaking at the inaugural International Financial Services Summit in the Four Seasons Hotel in Dublin, Mr Lenihan would not be drawn on whether the Government will consider widening the tax bracket to include more low income earners, preferring to reiterate that higher tax rates often prove a deterrent to work.

“Ireland has a relatively low rate of tax on low income earners, half of which are outside of the tax bracket, and it is an issue which we will have to look at in the future,” he said.

“However, further tax increases by the Government will not increase the incentive to work, and it must be remembered that it was Government-sponsored incentives to work that contributed to economic growth in the 90s,” he said. “You cannot tax yourself out of a recession.”

Mr Lenihan rejected suggestions that the Government had reversed its stance over the balance between tax increases and spending cuts announced in the 2010 fiscal adjustments last April.

“I made it very clear when speaking on the fiscal adjustment programme that the figure for tax was a maximum, and that the figure for expenditure was a minimum, so seeking the greater balance from expenditure does not represent a change in government policy,” he said.
Lenihan hints at widening tax net for low paid workers - The Irish Times - Thu, Nov 05, 2009

He keeps talking about widening the tax band to take in low earners but not for higher earners ?

Did you not notice the income levies?

[toughbutfair]

[quote=ifreannach;2256427]

So what, he is correct!

no he is not

How can you have so many people making no financial contribution?they cannot afford it

what is wrong with expecting people to pay money towards the state via income tax? wasteful government spending FAS etc - too many charity cases! horsing industry?

The system is currently biased towards the low paid and it is right that their free ride comes to an end. show me the proof of that statement

If these hundreds of thousands of people start to pay a bit it would help. they already pay through stealth taxes

We should abolish tax credits, and have a 10% start off rate of tax. abolish te tax creditis for who exactly and 10% start off rate for who

Yes - waste, horse racing industry , FAS etc also need to stop taking our money. These issues are not mutually exclusive.

The lower paid will have to cut back just like everyone else - they must pay their way, how can they expect people like me to pay their way in life (I already do, but why more so)

Abolishing tax credits would apply to everybody and the 10% starting off rate would apply to everybody for the first xxx amount of money (maybe 20k or so)