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Thread: We have to become a "normal tax" economy. Does that mean we'll get "normal" services?

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    Default We have to become a "normal tax" economy. Does that mean we'll get "normal" services?

    Ireland will not continue as a low-tax country, says EU's Rehn - The Irish Times - Sat, Oct 02, 2010

    We apparently have to start paying "normal tax".

    Awesome! Does this mean we'll now get "normal" services? This guy wants us to pay the same taxes as most European countries. Most of those have universal healthcare that is free or vastly vastly cheaper and subsidised. They have cheaper transport. They have cheaper energy bills. Low cost wide broadband coverage.

    So all those things are what you get when you pay more taxes? Cool! So if I pay more tax, then I guess I can cancel our health insurance then, as the new universal healthcare will kick in and we won't need private insurance anymore. Great! I can also go and see the GP for free or for a good bit less than 60euro, and get cheap medicine. I'm ALL FOR IT!

    Then I can look forward to paying "normal" prices for my electricity, which sure will save some money, I can tell you. And odds are good I can get the train from Dublin to Kerry for less than the bones of 80 quid if the fancy so takes me.

    I really think that this paying "normal" taxes lark will save me more money in the long run.

    Oh, wait. They did mean they were going to use my tax money for services and infrastructure, right? Like what you're supposed to use tax money for?
    Not surely, to put into Anglo. And pay the Taoiseach more than the President of the USA?

    I'm sure that's not the case.

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    Yes we will have normal taxes and normal wages. But not normal employment levels or services. We wont have normal laws or normal banks either. Because we are not normal, we are special. We know better than everyone else in the EU and we know a better way of doing it.

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    Been following Garret Fitzgerald's recent analysis of our PAYE tax system and in the interview below he states that a married couple with 2 children, joint earners pay 3,000 in tax on a total income of 65,000 - can this be correct??


    RT.ie Media Player: Six One News 1 October 2010

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    Quote Originally Posted by ARCUS View Post
    Been following Garret Fitzgerald's recent analysis of our PAYE tax system and in the interview below he states that a married couple with 2 children, joint earners pay 3,000 in tax on a total income of 65,000 - can this be correct??


    RT.ie Media Player: Six One News 1 October 2010
    Roughly so - that's what "low tax economy" means. The government was living on stamp duty.
    Never let the best be the enemy of the good.

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    Quote Originally Posted by jane5 View Post
    We apparently have to start paying "normal tax".

    Awesome! Does this mean we'll now get "normal" services? This guy wants us to pay the same taxes as most European countries. Most of those have universal healthcare that is free or vastly vastly cheaper and subsidised. They have cheaper transport. They have cheaper energy bills. Low cost wide broadband coverage.
    The irony is that we were not really that low tax an economy in the first place. The higher rate of income tax, although relatively not that high, kicked in quite early. And we had higher than average VAT rates to pay. Not to mention excise on cars and booze.

    The even worse irony is that we still didn't get the "normal" services we might have expected from all that lolly swilling around in government coffers.

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    Doesnt make sense - check out the website below

    Tax Calculator 2010

    - say one earner on 40k and other earner on 25k - total tax bill is as follows;

    Effective salary for year 40,000.00
    Benefit In Kind 0.00
    Pension 0.00
    Taxable Income 40,000.00
    PAYE - Standard Rate 8,000.00
    PAYE - Top Rate 0.00
    Total Tax Bourne 8,000.00
    Tax Credits 3,660.00
    PAYE Payable 4,340.00
    Income Levy 800.00
    PRSI 1,335.84
    Health Levy 1,600.00
    PRSI & Health Levy 2,935.84
    Total Payable 8,075.84
    Net Salary 31,924.16

    Effective salary for year 25,000.00
    Benefit In Kind 0.00
    Pension 0.00
    Taxable Income 25,000.00
    PAYE - Standard Rate 5,000.00
    PAYE - Top Rate 0.00
    Total Tax Bourne 5,000.00
    Tax Credits 3,660.00
    PAYE Payable 1,340.00
    Income Levy 500.00
    PRSI 735.84
    Health Levy 0.00
    PRSI & Health Levy 735.84
    Total Payable 2,575.84
    Net Salary 22,424.16

    Adding both above - gets a total tax bill of 8,075.84 + 2,575.84 = 10,651.68 - long way from Garrett's 3k!!

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    Look at this way. A few years ago a married couple with three kids and a mortgage on one salary of about 45k, their net contribution to the state by the time you factored in children's allowance and mortgage interest relief was about zero. This of course excludes indirect taxation and other service charges but you get the picture. What eejits in government ever though that this was sustainable?

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