The 6% of High Income Earners

[Skin]

The 6% of High Income earners contribute 50% of the income tax take. This propaganda is being used by Ministers in the FF cabinet of late. The only reason I can imagine they are using it is to somehow project the image that high earners are the ones most burdened by income tax, and that the other 94% of us should count ourselves lucky that we are not in that top 6% of earners.

So a couple of qestions for FF's:

1. What rate of tax do the top 6% of earners pay their taxes on? If it is not greater that 41% can you explain Ministers Aherne and Cullens recent comments concerning the top 6%?

2. How much would you have to earn to be in the top 6% of earners?

3. This a maths question - what % proportion of income tax payers contribute 100% of the income tax take?

4. Is the 6% of high earners a more extended family version of the Golden Circle?

[drkpower]

The 6% of High Income earners contribute 50% of the income tax take. This propaganda is being used by Ministers in the FF cabinet of late. The only reason I can imagine they are using it is to somehow project the image that high earners are the ones most burdened by income tax, and that the other 94% of us should count ourselves lucky that we are not in that top 6% of earners.

So a couple of qestions for FF's:

1. What rate of tax do the top 6% of earners pay their taxes on? If it is not greater that 41% can you explain Ministers Aherne and Cullens recent comments concerning the top 6%?

Im not a FFer but its fairly simple....

41% of a €10,000,000 is €4,100,000.

It would take thousands of individuals earning €30K to contribute that much to the exchequer.

Its not rocket science.

[Skin]

Thats true, but the question really is why do FF Ministers focus on the top 6%. It is not as if they have to carry any extra burden, so why focus on the top '6%' as opposed to say the top 15% or 35%, or if they really considered themselves a goverment of the people then the only statistic that matters here is the top 100% of icome tax contributors.

[Big Bobo]

The question nobody seems to ask is how have we have let ourselves become such an unequal society. The fact 6% of people have so much wealth that they contribute 50% of all tax says it all really.

[Big Bobo]

Im not a FFer but its fairly simple....

41% of a €10,000,000 is €4,100,000.

It would take thousands of individuals earning €30K to contribute that much to the exchequer.

Its not rocket science.

Unfortunately it's not that simple. Huge amounts of wealth created in Ireland is not taxed here.

[ditchhurler]

Thats true, but the question really is why do FF Ministers focus on the top 6%. It is not as if they have to carry any extra burden, so why focus on the top '6%' as opposed to say the top 15% or 35%, or if they really considered themselves a goverment of the people then the only statistic that matters here is the top 100% of icome tax contributors.

The reason there's been so much about this in recent days is that there's been a generally unchallenged view that the burden of tax paying falls on the less well off ( this is what the ICTU march ostensibly was about after all ) when in fact the well-to-do do pay SOME tax ( i.e. 50% of all tax take being paid by the top 6% ) Sure, this will have to increase even more, but there must come a time when the lemon stops producing juice and it's counterproductive. I think that if the tax rates are increased for the top 6% so they pay 75% of all tax that would be fairer to the 40% who are so poor they pay no tax at all.

[drkpower]

Unfortunately it's not that simple. Huge amounts of wealth created in Ireland is not taxed here.

fair point - i was going with the simplified version. The more complex version is beyond me.

[hopi watcher]

This is indeed disgraceful propoganda for a government to be coming out with. These figures only relate to income tax take which only accounts for less than 30% of total take. Over 50% of total take comes from indirect taxes which we all pay equally regardless of means. The rich in Ireland pay the least tax of all other EU countries.

[John_C]

Sorry if this question is a bit off topic but does anyone know what proportion of the workers who pay no tax are teenagers and students working for pocket money? I wouldn't mind seeing them pay their share.

[drbob1972]

2. How much would you have to earn to be in the top 6% of earners?

well if income tax is 20Bln in total and 6% pay 50% of same that means they pay 10Bln between them, now (based on cso data of approx 2M employed) that works out at approx 95K per person in tax, which is a pre tax salary of approx 240K......

3. This a maths question - what % proportion of income tax payers contribute 100% of the income tax take?

well if 38% of people pay no tax at all then 62% pay the total 100%