Wednesday, 20 October 2010

World Bank report junks Irish "low tax" boast

According to a World Bank report, Ireland currently has an effective 46% top rate of tax. This, according to Ken Foxe reporting in last Sunday’s Tribune, ranks Ireland eight-highest in the world with regard to income tax. I imagine that the effective rate includes PRSI and the income levy… the Two Brians can call them what they like, they are tax.

Just to point out, according to the Revenue site an individual taxpayer goes into the “top” rate band on an income of €36,400. This applies only to those in the PAYE sector, of course – and PAYE workers paid €10 billion of the total income tax take of €13.5 billion in 2007. There are those outside this exploited sector banking multiples of €36,400 who pay little or no tax, due to still-in-effect tax shelters and creative accounting.

So next time you hear some gombeen politician blabbing on that we live in a low tax economy, consider the above. Also consider the fact that we pay more for our cars than most Europeans thanks to VRT, that we pay tax on our credit cards, pay DIRT on our savings, pay an insurance premium tax, and have a higher VAT rate than the UK.

The only low tax is the corporate rate of 12.5% - conceived to steal a sneaky march over most of our fellow EU member states. Ironically, we are likely to need their help increasingly over the coming years – and financial help seldom comes without strings attached.

Oh, and expect our standing in the World Bank’s high-income-tax league to jump a few notches after the next draconian budget hits the usual suspects.

We mugs.

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Anonymous said...

what an awsome little paradise GM -BH

poneygarcon said...

Jesus - imagine how pissed off the French would be if they were facing NAMA, the Bank dig out and the whole medley of Irish taxes instead of the prospect of only having to work for a couple of extra years. They'd burn Dublin to the ground.

Anonymous said...

@poney garcon,best idea yet!

Anonymous said...

Lighten up Gombeenman , sure you can bomb off to Australia and go drinking with lads in Cavan jerseys or you could put your 196 a week on a horse or you could start a lemonade stand ,stop being a neighsayer , grow some bluebells

Dakota said...

GM that's the clear misconception which is the problem, with regards to taxation in Ireland. Stealth "charges" would literally need to be labeled "A TAX," before they'd be considered as such. That for me is the worring part. Though, that being said, even taxation at scource is not straightforward here either. Again, its ludicrous to think that the new levies (and even PRSI) are not considered as taxation by many because they are not under the genertic term TAXATION.

The Gombeen Man said...

@ PB (sorry PC), BH and Rabby. The reactions beyond our little piece of paradise - France for instance - are very different. I'm sure there are still people around Drumcondra who'd rush to shake Ahern's hand, rather than grab him by the throat.

@ Anon 16:37. Jasus. Dat's not deh man himself, is itttt???

@ D. I wonder what new "charges" they'll dream up, come budget day.

Ella said...

@Anon 16h37. I thought you were going to tell GM to go and commit suicide. The economic crash is just going to get crashier.

(Bertie told those who were talking down the economy to commit suicide. He also told us that the boom was getting boomier, yeah right!)