Constantin Gurdgiev calls for 20% flat rate tax

[Elmo_loves_you]

Keep It Simple Stupid!

First of all, I am not a financial expert just your average joe but it seems to me that the system has become an indecipherable maze of cut-off points, tax allowances for this and that which makes any budget adjustments equally confusing and liable to distortion.

People are angry partly because they don't fully understand the implications of various budget tweaks and how it will affect their personal finances (I include myself in this bracket).

This is, I suspect, exactly how the powers that be want it. Any measures that will simplify the situation should be welcomed in my opinion.

Pro-rata taxation has to be the fairest way forward with tighter control to ensure that as many people are in the tax net. In return, those at the lower end of the scale will have to be recognised as valued contributors and not be punished while they try to improve their lot.

The case of the wicklow couple who lost their rental allowance because the husband opted to accept 3 days paid work, pushing them over the threshold resulting in homelessness, for example. Maybe if the tax system was different and the Govt. saw 20% of what he earned, they would not be so quick to throw them out on the street.

This country needs to radically change how such considerations are made.

[toughbutfair]

I agree that threholds are ridiiculous. However, income tax is not based in this way i.e. when you go over a threhold only the excess is taxed at the higher rate. I also agree that the gross income should be taxed instead of giving tax breaks for pensions etc

Thankfully, it the sunday times reports that tax rises in the budget will be based on everyone earning income paying income tax. It seems common sense, at the moment somebody earning 18k only pays 2%, somebody on 90k pays 40%(euro36,000) tax.

[Keith-M]

About time this was put to the people. It's the fairest, easiest and most progressive tax system there is.

[Red_93]

I remember him on 'Talking History' once on Newstalk mention how living in Soviet Russia his hero and inspiration was Ronald Reagan. I could almost hear the Newstalk's middle class liberal audience swirm.

My god, you really do have a massive massive class based chip in your shoulder. You're full of hate and anger!!

[jmcc]

My god, you really do have a massive massive class based chip in your shoulder. You're full of hate and anger!!

Whereas Labourites like you and Ruairi Quinn are full of smoked salmon and champagne?

Regards...jmcc

[blindjustice]

Economist urges 20% flat tax rate - RT News

An economist has called for a maximum 20% flat rate of income tax, saying the current tax system does not create any incentives to invest in employing highly-skilled people.

Dr Constantin Gurdgiev of Trinity College was speaking at the annual conference of the Institute of Certified Public Accountants (CPA) in Maynooth.

Dr Gurdgiev dismissed optimistic reports of an imminent recovery, saying that since May 2009, we had 'turning corners to a recovery more often than Michael Schumacher on a World Grand Prix circuit'.

The economist said Ireland's combined Government and economy-wide debt was the worst of any of the other so-called PIIGS states (Portugal, Ireland, Italy, Greece and Spain). He also said Ireland was only ten quarters into twin crises of house price falls and shrinking credit, warning that he expected 33 quarters of falls unless radical action were taken.

Dr Gurdgiev said there were some grounds for optimism on competitiveness, but exporters alone could not 'carry the economy out of a hole'.

He warned that competition for foreign investment would heat up in future, and Ireland best prospects lay in expanding the knowledge economy. He said the knowledge economy was 'human capital intensive', but there were no incentives to invest in this.

To address this, the economist called for a flat 20% income tax rate, a shift of the tax base to property and a closing of what he called 'the welfare trap'.


A little quiz on Ireland’s income tax | Ronan Lyons

[Taxi Driver]

House prices have been falling for 17 quarters (since Q4 2007).

[Disillusioned democrat]

Economist urges 20% flat tax rate - RT News

An economist has called for a maximum 20% flat rate of income tax, saying the current tax system does not create any incentives to invest in employing highly-skilled people.

Dr Constantin Gurdgiev of Trinity College was speaking at the annual conference of the Institute of Certified Public Accountants (CPA) in Maynooth.

Dr Gurdgiev dismissed optimistic reports of an imminent recovery, saying that since May 2009, we had 'turning corners to a recovery more often than Michael Schumacher on a World Grand Prix circuit'.

The economist said Ireland's combined Government and economy-wide debt was the worst of any of the other so-called PIIGS states (Portugal, Ireland, Italy, Greece and Spain). He also said Ireland was only ten quarters into twin crises of house price falls and shrinking credit, warning that he expected 33 quarters of falls unless radical action were taken.

Dr Gurdgiev said there were some grounds for optimism on competitiveness, but exporters alone could not 'carry the economy out of a hole'.

He warned that competition for foreign investment would heat up in future, and Ireland best prospects lay in expanding the knowledge economy. He said the knowledge economy was 'human capital intensive', but there were no incentives to invest in this.

To address this, the economist called for a flat 20% income tax rate, a shift of the tax base to property and a closing of what he called 'the welfare trap'.


A little quiz on Ireland’s income tax | Ronan Lyons

To be honest, 20% is probably too low, but the idea of a flat tax rate on all income over a "cost of living" threshold makes complete sense. There are too many loopholes in the current tax regime, and it's too expensive to collect and administer anyway, plus leaves too many out of the "democracy loop" whereby the decisions of the government are irrelevant to them because they pay no tax.

[Tombo]

I wouldn't mind 35% on all income over 10k. Not sure what that would raise though.

[Disillusioned democrat]

I wouldn't mind 35% on all income over 10k. Not sure what that would raise though.

One of the beauties of a flat tax rate would be the fact that he government would have a simple lever to balance the books each year....raise or lower the tax rate as required. Then there's no specific interest groups crying foul, not highly vocal group claiming victim hood or looking for special treatment, it's a simple one-size-fits-all increase/decrease and everyone gets to judge the government from the same perspective, how much did that policy or scheme, success or failure earn/cost me and am I happy to vote for hem again. At present there are too many ways to play voters off against each other, no sense of solidarity. A flat tax rate would be a big step towards that.