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Thread: Government's tax policy will drive away the best managers

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    Politics.ie Member Disillusioned democrat's Avatar
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    Default Government's tax policy will drive away the best managers

    Three of my direct reports, all at manager level and all doing a great job, have been justifiably agitating for more money. They have taken pay cuts 3 years ago and have had no pay increases since then, despite a heavier work load.

    The problem is that they have got to a level where the government will effectively take more than half of any possible increase I can give them, so to them to get a €5k pay rise actually means I need to find over €10k and so forth.

    My ability to meet their expectation is minimal, and these guys could all walk into a job in the UK tomorrow, so there's every risk that I'll lose 2 out of the 3 within 6 months. If they go it will be a huge problem for the company I work for but given the tax multiplier effect I can't afford to pay them enough.

    The probability is that this cycle will continue over and over - get the right people, give them the experience and lose them until you have to decide do you (a) try to skill down, and get people who won't have the ability or drive to be able to leave to do the job or (b) just get used to the idea of being a creche for a generation of managers-for-export.

    Either way Ireland's competitiveness and commercial capability will suffer greatly and further erode our ability to get to a stage where we don't need to hold a begging bowl to the rest of Europe.
    The more things change....

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    Politics.ie Member Crazy horse 6's Avatar
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    The government could care less about your problems.

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    Quote Originally Posted by Disillusioned democrat View Post
    Three of my direct reports, all at manager level and all doing a great job, have been justifiably agitating for more money. They have taken pay cuts 3 years ago and have had no pay increases since then, despite a heavier work load.

    The problem is that they have got to a level where the government will effectively take more than half of any possible increase I can give them, so to them to get a €5k pay rise actually means I need to find over €10k and so forth.

    My ability to meet their expectation is minimal, and these guys could all walk into a job in the UK tomorrow, so there's every risk that I'll lose 2 out of the 3 within 6 months. If they go it will be a huge problem for the company I work for but given the tax multiplier effect I can't afford to pay them enough.

    The probability is that this cycle will continue over and over - get the right people, give them the experience and lose them until you have to decide do you (a) try to skill down, and get people who won't have the ability or drive to be able to leave to do the job or (b) just get used to the idea of being a creche for a generation of managers-for-export.

    Either way Ireland's competitiveness and commercial capability will suffer greatly and further erode our ability to get to a stage where we don't need to hold a begging bowl to the rest of Europe.
    Have you considered renumeration through share options?

    The best way to avoid income tax is to minimise income and maximise capital gains!

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    Or they could move to an Irish company who will pay them the €10k more. Or who will give them more time off instead of pay increases.

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    Politics.ie Member Sync's Avatar
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    Make the lowest performing, newest entry to the company redundant and spread their money around those who are performing?
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    Politics.ie Member firefly123's Avatar
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    As I am so often reminded there are 400,000 people waiting to walk in to their job in the morning*.





    * I am very much aware that those 400,000 don't necessarily have the qualifications or skills to perform the task but since when has reality got in the way of a nice soundbite?
    Life is hard
    That's why no-one survives

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    Taxing work at 52% at just 1 x average wage for a single person is hugely damaging, the OP is in no way exaggerated. What's going to happen is tax on work will start to fall and property tax will rise in parallel. Expect property tax to head towards 1%.

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    GDPR Deleted
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    If they're that good they can generate the extra profit required to pay whatever you need to pay them and if they can't do that, they're being paid more than enough as it is.

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    The Revenue's employee share option scheme allows employers to pay employees €12,700 per year tax free by way of shares!

    Why do employers not make more use of the scheme?

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    Politics.ie Member Howya's Avatar
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    Quote Originally Posted by IbrahaimMohamad View Post
    The Revenue's employee share option scheme allows employers to pay employees €12,700 per year tax free by way of shares!

    Why do employers not make more use of the scheme?
    Probably because is a private company, valuations are difficult and there is no liquid market for the shares.
    “Still paying, still to owe. Eternal woe! ” ― Paradise Lost, John Milton

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