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Thread: Tax changes in budget 11

  1. #1
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    Default Tax changes in budget 11

    What tax changes should we expect in the budget ? There has been alot of talk about low pay workers paying income tax what rate do you think they might end up paying? What about the income levys ? Aren't most low pay workers paying the 2 percent levy ?

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    This is my take -

    The tax credit for PAYE will be slashed, thus bringing the low paid into the tax net, at the same rate that the rest of us pay. Cutting the credit will affect all of us though.

    The low rate might stay unchanged, but the top rate of 41% might increase to 43 or 44.

    I would like to see a 3rd rate of tax for higher earners, but I'm not sure that will happen this year. Maybe phased in.

    A universal charge to replace all the levies and PRSI - about 8%.

    A levy on PS pensioners. I think this is prohibited in the CPA, but times are hard, and there is a clause in there to allow this.

    Tobacco will be hammered, although the counter measures against smuggling, which is rife must be beefed up.

    Excise duties in general to rise. Fuel, alcohol, etc.

    Inheritance Taxes - slash the tax free amount, and increase the rate to 30%

    CGT increase the rate to 30%. Doesn't matter, nothing is selling, but when things get better people might have to sell to survive, so will take the hit.

    CT, unchanged or reduced by .5%

    A levy on SW payments for employment initiatives.

    VAT, well, I think the 0% rate might be increased for certain things. They might hope no one will notice that, although the shoes thing years ago might frighten them off.

    I think the slash and burn cuts might be a bit worse than the tax changes, although they will be bad enough.

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    The low rate might stay unchanged, but the top rate of 41% might increase to 43 or 44.
    The financial problems will not be solved until the low rate is significantly increased. The high rate can remain - it's not much different to Germany, Netherlands , etc., . What needs to come in is a new 3rd rate of tax at a lower income threshold. Assuming of course people want a hospital, school or if they prefer a new mobile phone and to be remain with 3rd world services.


    I would like to see a 3rd rate of tax for higher earners, but I'm not sure that will happen this year. Maybe phased in.
    The modern Irish definition of a high earner is anyone who earns 20% more than you. It's also known as a induces-a-chip-on-the-shoulder salary.

    A universal charge to replace all the levies and PRSI - about 8%.
    That would be great! When I left the HSE (and the country) my last round of levies (on top of PAYE) was 6.5% PRSI, 4% income levy, 8.5% pension levy, and whatever the health levy is.


    A levy on PS pensioners. I think this is prohibited in the CPA, but times are hard, and there is a clause in there to allow this.
    New taxes need to be focussed on lower income earners from the ages of ~20-45. They are the primary workers in any economy and consitute the largest portion of workers. If they all share a little bit of the brunt, it's much more sustainable - and SUSTAINABLE is the key. Grabbing cash from people for a few years does not solve the social problem of 50% of the country paying nothing for services but at the same time feeling entitled to them.

    Tobacco will be hammered, although the counter measures against smuggling, which is rife must be beefed up.

    Excise duties in general to rise. Fuel, alcohol, etc.
    Makes no sense at all. More taxes on tobacco will reduce the customs taxes take with expanding blackmarket - that is what happens in the real world and not the soviet union. Taxing fuel will kill whatever economy is left; growth is inextricably linked to fuel costs. Margins are already tight.

    Inheritance Taxes - slash the tax free amount, and increase the rate to 30%
    This will see anyone with actual wealth moved residency - rich older people.

    CGT increase the rate to 30%. Doesn't matter, nothing is selling, but when things get better people might have to sell to survive, so will take the hit.
    Tax increases, tax increases eh? That is your best solution? There is no money being generated, so tax must drop drop drop! Tax increases is short term left wing thinking, eventually driving any economy, social flexibility out of the country for good. Who's piggy bank will you raid in a year? in two years? still pretending there will be a magical recovery?

    CT, unchanged or reduced by .5%
    Makes not a bit of difference.

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    Politics.ie Member daveL's Avatar
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    Hmmm...

    I'd introduce water charges and property tax

    Increase DIRT and other like focused standing wealth charges. I'd also increase our corporation tax and tidy up our tax legislation which allows multinationals use Ireland for tax avoidance.

    I'd remove all tax credits. All of them. Pay tax from your first buck.

    But then I'd have three income tax rates of about 10%, 25% and 40%

    40% would only impact those on salaries of 75k or over

    Everyone should pay tax. Nobody is too poor to pay tax. But those who have more should pay more. Not those who have more pay for everything.

    We all live in this state. Nobody should get a free ride.

    13 years of FF has given us an entitlement culture where people believe that someone else is responsible for paying their costs of living in Ireland.

    That's where the unfairness lies in Ireland.
    Last edited by daveL; 1st November 2010 at 04:47 PM. Reason: grammar

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    Quote Originally Posted by asset test View Post
    This is my take -

    The tax credit for PAYE will be slashed, thus bringing the low paid into the tax net, at the same rate that the rest of us pay. Cutting the credit will affect all of us though.

    The low rate might stay unchanged, but the top rate of 41% might increase to 43 or 44.

    I would like to see a 3rd rate of tax for higher earners, but I'm not sure that will happen this year. Maybe phased in.

    A universal charge to replace all the levies and PRSI - about 8%.

    A levy on PS pensioners. I think this is prohibited in the CPA, but times are hard, and there is a clause in there to allow this.

    Tobacco will be hammered, although the counter measures against smuggling, which is rife must be beefed up.

    Excise duties in general to rise. Fuel, alcohol, etc.

    Inheritance Taxes - slash the tax free amount, and increase the rate to 30%

    CGT increase the rate to 30%. Doesn't matter, nothing is selling, but when things get better people might have to sell to survive, so will take the hit.

    CT, unchanged or reduced by .5%

    A levy on SW payments for employment initiatives.

    VAT, well, I think the 0% rate might be increased for certain things. They might hope no one will notice that, although the shoes thing years ago might frighten them off.

    I think the slash and burn cuts might be a bit worse than the tax changes, although they will be bad enough.
    so a min wage worker would end up paying 28 percent tax? Surely they would all go on the dole?

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    property tax based on Commission on Taxation report - no exemptions for anyone

    second home tax - increase from €200 to €1000 in addition to property tax

    add 20c excise to petrol/diesel per litre

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    Deflate the tax credits and bands by about 5 to 7% and in doing so , broaden the base a bit.

    Universal charge to merge PRSI and levy with no exemption limit.

    Add 2% on to top rate. Wont bring in much but optically if the base is being broadened through measures above, the "well off" need to be seen to contribute (well off being a relative term).

    Add 2pc to CGT and jack up gift and inheritance tax - see above.

    Cap top rate pension relief to 33%.

    Increase VAT to 23% from 1 January (when UK rate goes to 20%) and hope sterling doesn't depreciate more........

    And for a "hail Mary", reduce Stamp Duty to say 3% (take has collapsed anyway) and hope it will generate some movement in commercial buildings etc this possibly generating SD and CGT although the latter unlikely, via overseas investors. They are sniffing around at the moment....

    all for starters.......

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    Quote Originally Posted by jacko View Post
    property tax based on Commission on Taxation report - no exemptions for anyone

    second home tax - increase from 200 to 1000 in addition to property tax

    add 20c excise to petrol/diesel per litre
    CoT report cannot be introduced in 2011 ( no valuations) so it would have to be a flat charge.

    It will be difficult to justify a tax on 'family' homes that is higher than the existing second home tax.

    BTW the valuers who valued Gilmore's other half's field for 525k will make a right killing over the next few years with property tax valuation. This should be worth at least a few hundred million to them-poor souls. Along with NAMA work this should just about keep their heads above water.

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    Politics.ie Member daveL's Avatar
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    Quote Originally Posted by athlonedub View Post
    Deflate the tax credits and bands by about 5 to 7% and in doing so , broaden the base a bit.

    Universal charge to merge PRSI and levy with no exemption limit.

    Add 2% on to top rate. Wont bring in much but optically if the base is being broadened through measures above, the "well off" need to be seen to contribute (well off being a relative term).

    Add 2pc to CGT and jack up gift and inheritance tax - see above.

    Cap top rate pension relief to 33%.

    Increase VAT to 23% from 1 January (when UK rate goes to 20%) and hope sterling doesn't depreciate more........

    And for a "hail Mary", reduce Stamp Duty to say 3% (take has collapsed anyway) and hope it will generate some movement in commercial buildings etc this possibly generating SD and CGT although the latter unlikely, via overseas investors. They are sniffing around at the moment....

    all for starters.......
    adding more to the top rate is just self defeating

    there is a myth out there that those well paid are paying very little

    They pay pretty much everything.

    But that's very easy to ignore.

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    Will the price of booze go up? Shouldn't things like this get cheaper as we get poorer, how come in Ireland it gets more expensive???

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