Total Irish tax burden almost unchanged in period 1995-2005

[MichaelHennigan]

Tax revenues, measured as the ratio of tax to Gross Domestic Product (GDP), are rising in many OECD countries despite deep cuts in tax rates, according to a new OECD report, reflecting both the effects of stronger economic growth, which has led to higher corporate profits, and moves in some countries to offset the effects of cuts in tax rates by broadening the tax base and improving tax compliance.

In 2005, according to the latest edition of the OECD’s annual Revenue Statistics publication, tax burdens as a proportion of GDP rose in 17 out of the 24 countries for which provisional figures are available, and fell in only five countries. The biggest increases were in Iceland, where the tax burden rose by 3.7 percentage points to 42.4% of GDP, followed by the United States (up 1.3 points to 26.8% of GDP) and the United Kingdom (up 1.2 points to 37.2%). In 2004, the tax ratio rose most steeply in Ireland (1.4 points).

The largest 2005 reduction in overall tax ratios was in Hungary (down one percentage point to 37.1%).

GNP is a more useful benchmark for Ireland as it excludes the output of multinationals. GDP/GNP figures for other countries are not significantly different.

Tax as a percentage of Irish GNP in 1995 was 36.7% and was 36.2% in 2005.

If health insurance premiums are viewed as a tax because of the perceived low quality of the public health service, then our tax burden would be even higher and would compare with the UK's.

So low income and corporate taxes does not mean that we are a low tax economy.

On Tuesday, Davy Stockbrokers said a "worst-case scenario" severe downturn in the construction sector could result in €3bn shortfall in 2007 tax revenue

The Davy report says tax revenue from the property market - including VAT, stamp duty and capital gains tax - has tripled since 2002 and will account for almost 17% of tax receipts this year. It says the public finances are now exposed to a downturn in the property market.

Any ideas for new stealth taxes?

OECD reportdetails

[hiker]

I was distributing my party leaflets last week. Its a table showing how we the PDs can save you money by reducing income tax.
The 100-40-40 formula that the party is pushing.

My 14 year old son asked me how do we pay for hospitals and schools if we cut taxes?

Good question son. there are many ways to skin a cat and we dont have to take money out of peoples pay packets in order to pay for schools and hospitals, I answered.

Your post proves it. Thank you very much for that table.

[BarryW]

I was distributing my party leaflets last week. Its a table showing how we the PDs can save you money by reducing income tax.
The 100-40-40 formula that the party is pushing

You shouldn't have bothered printing new leaflets for that. You could have saved money by distributing the PD manifestos from 1997 and 2002

[hiker]

I was distributing my party leaflets last week. Its a table showing how we the PDs can save you money by reducing income tax.
The 100-40-40 formula that the party is pushing

You shouldn't have bothered printing new leaflets for that. You could have saved money by distributing the PD manifestos from 1997 and 2002

The figure show that the burden of taxation has shifted from the PAYE workers to indirect taxation.
The tax take is still the same but workers are earning more.

In my opinion that shift is psycologically massive because it will be next to impossable to reintroduce high income taxes.

Having acheived the shift to indirect taxation to support the massive state payroll, the next 10 years should be spent shifting the cost burden of that State payroll.

We the Progressive Democrats have been at the forefront of delivering lower income taxation and we will be at the forefront of delivering services for less.
These figures prove that what we have done has been right. Ordinary workers bringing home more of their wages than at any time in the history of this State and yet still delivering the pork for the Public Sector.

[Pax]

These figures prove that what we have done has been right. Ordinary workers bringing home more of their wages than at any time in the history of this State and yet still delivering the pork for the Public Sector.

Wibble, blah, blah, ...... Wibble ....

hiker commenting on the positive effects of regressive taxation for 'ordinary workers'. A policy platform of the progressive democrats...



[size=7]ffs, one grows increasingly mistrustful of language (+35exp points)...[/size]

[MichaelHennigan]

I was distributing my party leaflets last week. Its a table showing how we the PDs can save you money by reducing income tax.
The 100-40-40 formula that the party is pushing

You shouldn't have bothered printing new leaflets for that. You could have saved money by distributing the PD manifestos from 1997 and 2002

The figure show that the burden of taxation has shifted from the PAYE workers to indirect taxation.
The tax take is still the same but workers are earning more.

In my opinion that shift is psycologically massive because it will be next to impossable to reintroduce high income taxes.

Having acheived the shift to indirect taxation to support the massive state payroll, the next 10 years should be spent shifting the cost burden of that State payroll.

We the Progressive Democrats have been at the forefront of delivering lower income taxation and we will be at the forefront of delivering services for less.
These figures prove that what we have done has been right. Ordinary workers bringing home more of their wages than at any time in the history of this State and yet still delivering the pork for the Public Sector.

The "ordinary worker" on the average industrial wage is on €31k a year with no occupational pension.

It's surely mighty hard work "delivering lower income taxation" while collecting an average of €100,000 from every new housing unit built in the State?

Only if life could always depend on a surge in a 1990s US investment surge and a property boom.

Seeing that Davy Stockbrokers are not exactly members of the Socialist Party, if their scenario materialises, where should new taxes come from or spending cuts?

Carers' allowance cuts similar to 2002??

You kind folks are going to cut/abolish stamp duty for the "coping classes"

But there's no problem with land selling for €500,000 an acre. Its just competition I guess and that's suddenly popular after the Aer Lingus fiasco.

[KeithM]

It's good that we're still doing s well on this key measure. We may be up, but only Slovakia is doing better than us. Hopefully the people of Ireland will see this befoe next year's election, and not undop the progress of the last decade.

One major source of the increase in taxation is stamp duty and the PDs have already targetted a decrease in that as a priority (don't be surprised to see some move in the budget).

The Swedish electorate have already passed judgement on their tax and spend government, but it will take years of cuts to bring them into line with progressive economies.

[hiker]

These figures prove that what we have done has been right. Ordinary workers bringing home more of their wages than at any time in the history of this State and yet still delivering the pork for the Public Sector.

Wibble, blah, blah, ...... Wibble ....

hiker commenting on the positive effects of regressive taxation for 'ordinary workers'. A policy platform of the progressive democrats...



[size=7]ffs, one grows increasingly mistrustful of language (+35exp points)...[/size]

Its just a matter of choice. On PAYE most workers have NO choice. On Indirect Taxes they have.
If you want to purchase a 5 liter, 4-wheel drive SUV with you hard earned, low taxed cash then thats your business. You pay tax on VRT, fuel vat at 21%, Road tax up the yingyang.

It all about choice.

You take home 30K out of your 32K and you do whatever the FK you like with it.
But Pax I have noticed that you dont like giving choices to the working class. They are obvoiusly not as intelligent as you are and would'nt know what to to with there money. God knows they might spend it on something silly.

[EvotingMachine0197]

Its just a matter of choice. On PAYE most workers have NO choice. On Indirect Taxes they have.

Im on PAYE and i dont see much choice in paying/not paying non PAYE taxes.

For example:

TV Licence
Wheely Bins
Credit card stamp duty
Alcohol Duty and VAT
VRT
Road tax(OK I chose to drive a 2L car. But even if I drove a 1L its still taxed)
Health Insurance.(I agree with OECD that this is in effect a taxation)
Voluntary School Donations (Primary school) Voluntary my butt.
Air travel taxes
Property Stamp & CGT
Motorway tolls.
Planning and planning objection fees
FOI charges

blah blah

Where's the choice Hiker. I cant see it.

[hiker]

Its just a matter of choice. On PAYE most workers have NO choice. On Indirect Taxes they have.

Im on PAYE and i dont see much choice in paying/not paying non PAYE taxes.

For example:

TV Licence
Wheely Bins
Credit card stamp duty
Alcohol Duty and VAT
VRT
Road tax(OK I chose to drive a 2L car. But even if I drove a 1L its still taxed)
Health Insurance.(I agree with OECD that this is in effect a taxation)
Voluntary School Donations (Primary school) Voluntary my butt.
Air travel taxes
Property Stamp & CGT
Motorway tolls.
Planning and planning objection fees
FOI charges

blah blah

Where's the choice Hiker. I cant see it.

That whole list is a lifestyle choice. If you cannot see that then what can I say.