Flat Tax

[seabhcan]

The 1% "income levy" is probably Ireland's first Flat Tax. Is FF experimenting with this radical right wing idea?

[Big Bobo]

That is why it is so worrying. How long before a 3% levy and the upper bracket of tax reduced to 35%?

[Clanrickard]

The 1% "income levy" is probably Ireland's first Flat Tax. Is FF experimenting with this radical right wing idea?

A great idea flat tax but highly highly unlikely ever to be introduced here.

[Big Bobo]

A great idea flat tax but highly highly unlikely ever to be introduced here.

Why is it a great idea?

[myk]

Well firstly, it isn't a flat tax, it rises to 2% on the balance of earnings over €100,100.

Second, an income levy of 1% existed in the 92/93 tax year, and we have other levies both now and in the past; PRSI, health levies, the now defunct training and employment levy.

[seabhcan]

A great idea flat tax but highly highly unlikely ever to be introduced here.

Its a daft idea. What is the point of taxing someone on €10k/year €100 euro? It will disporportionately hurt them, the tax take will hardly offset the admin costs of bringing them into the tax net.

I would have supported it if there had been a cut off point of around 20k a year.

[Big Bobo]

Well firstly, it isn't a flat tax, it rises to 2% on the balance of earnings over €100,100.

Second, an income levy of 1% existed in the 92/93 tax year, and we have other levies both now and in the past; PRSI, health levies, the now defunct training and employment levy.

Then why not just increase the higher rate of taxation or create a 3rd bracket for the super rich and leave the poor alone?

[myk]

Its a daft idea. What is the point of taxing someone on €10k/year €100 euro? It will disporportionately hurt them, the tax take will hardly offset the admin costs of bringing them into the tax net.

I would have supported it if there had been a cut off point of around 20k a year.

The benefits in the budget, such as increases in social welfare rates and increases in the standard rate tax band should offset the cost of the income levy for many of those on low incomes.

[seabhcan]

Well firstly, it isn't a flat tax, it rises to 2% on the balance of earnings over €100,100.

Second, an income levy of 1% existed in the 92/93 tax year, and we have other levies both now and in the past; PRSI, health levies, the now defunct training and employment levy.

Did those levies cover all incomes, even low paid?

[Big Bobo]

The benefits in the budget, such as increases in social welfare rates and increases in the standard rate tax band should offset the cost of the income levy for many of those on low incomes.

So how will it benifit someone on minimum wage?