Limited Gains from Taxing the Rich

[Dreaded_Estate]

The Irish Economy Blog Archive Limited Gains from Taxing the Rich

While the gains may be somewhat limited I think a top rate of tax at 65% should be introduced.

But Karl Whelan is correct, there aren't massive gains to be got.

Now go over to the right-hand-side of the spreadsheet. I have done a set of calculations which detail how much money would be collected by an additional marginal tax rate of ten percentage points on the rich, where the definition of rich is varied from those earning over €60,000 to those earning over €200,000.

Based on the 2006 income figures, this higher third tax rate would have brought in an additional

€1.4 billion if levied on those with incomes over €60,000

€1.1 billion if levied on those on over €75,000

€787 million if levied on those on over €100,000

€539 million if levied on those on over €150,000

€430 million if levied on those on over €200,000.

[Garland Names the Planets]

The major problem with this is that people who earn that much have sufficient wealth to relocate to somewhere where they are not taxed at 65%, taking there business with them

[Wakeupcall]

The major problem with this is that people who earn that much have sufficient wealth to relocate to somewhere where they are not taxed at 65%, taking there business with them

Indeed - I would be on the first plane out of here. Emptying the bank accounts before I left. The sunshine is a more positive atmosphere to live in anyway!!

[sharper]

We need a lot of people working harder, longer to get out of the recession. We need people making more money not less. At 65% marginal rate I cannot imagine why anyone would push themselves.

[Hazlitt]

The..people who earn that much have sufficient wealth to relocate to somewhere where they are not taxed at 65%, taking there business with them

Exactly, then what position will we be in next year! We have to cut spending drastically, that is the harsh reality of the situation.

[White Horse]

Do those tables refer to jointly assessed incomes?

As I understand it, if a husband and wife each earn €55k (a good salary but hardly rich), the Revenue report it as €110k for a single taxable entity (ie. a jointly assessed couple).

[Garland Names the Planets]

Do those tables refer to jointly assessed incomes?

As I understand it, if a husband and wife each earn €55k (a good salary but hardly rich), the Revenue report it as €110k for a single taxable entity (ie. a jointly assessed couple).

But you get both your rate bands combined against it so it makes no difference

[sharper]

But you get both your rate bands combined against it so it makes no difference

The issue is how many people would a 100k+ bank apply to - do the revenue figures relate to just individuals earning that much or does it include couples. A 100k bank wouldn't apply to couples so it'd throw the calculations off.

[White Horse]

The issue is how many people would a 100k+ bank apply to - do the revenue figures relate to just individuals earning that much or does it include couples. A 100k bank wouldn't apply to couples so it'd throw the calculations off.

Not just sharp by name.

[Garland Names the Planets]

The issue is how many people would a 100k+ bank apply to - do the revenue figures relate to just individuals earning that much or does it include couples. A 100k bank wouldn't apply to couples so it'd throw the calculations off.

It would relate to individuals. It is true that a married couple are legally treated as a unit in taxation for legal and tax calculation purposes however for the purposes of compiling statisics that inform the table above the individual incomes is what would be supplied