The Labour Party would do so Labour plans pay freeze and tax for those on €100,000 - The Irish Times - Thu, Oct 28, 2010
Often when politicians talk about taxing the rich,they are softening up public opinion for increasing taxes on the middle classes. That's because there are not enough high incomes at the top of the income pyramid to generate more than a small proportion of the massive annual taxes of up to half the economy (maybe trending towards 60%+ now in Ireland) taken by voracious welfare states.
So you should clutch your wallet if you are a middle income earner listening to Labour's Eamon Gilmore proposing to tax incomes of over €100,000 at 62% including tax,levies and PRSI.
Finance Minister Brian Lenihan,whose frenzy of tax increases contributed to the depression in consumer spending,thinks this is a tax increase too far,believing that the tax take from Gilmore's proposal would drive people from Ireland. Certainly the foreign executives and managers who work for multinationals would not want to come here to start new businesses and it would be hard to retain those already here. In Microsoft for example,maybe a fifth of the Irish workforce is expats and they would no doubt prefer to work with Microsoft subsidiaries in low tax countries. As for Irish high earners,big business people have a choice of calling in tax lawyers to think up shelters that would defeat even a nightmarishly complex tax system or they could simply choose not to expand their businesses-a disaster for job creation.