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Constantin Gurdgiev calls for 20% flat rate tax


toughbutfair

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RTÉ Business: Economist urges 20% flat tax rate

Food for thought.

I wouldnt' go that far though, everybody should pay at least 10% of their income and then those with more should pay a maximum of 33%. I paid 40% of my income last year and I'm not rich.

Interesting to see an anti NAMA, anti this government economist calling for tax cuts for people on good wages.
 


borntorum

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Fairly standard stuff from Gurdgiev.

Calling for a 20% flat rate is a legitimate ideological stance (though not one I would share). But if he's going to be fully honest, he should outline the public services that he would cut to finance his tax cuts for the wealthy
 

Cassandra Syndrome

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Great idea. 1 simple tax for all income and earnings. 1 for consumption and 1 for output.
 

toughbutfair

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Fairly standard stuff from Gurdgiev.

Calling for a 20% flat rate is a legitimate ideological stance (though not one I would share). But if he's going to be fully honest, he should outline the public services that he would cut to finance his tax cuts for the wealthy
He said that property would be taxed, also I assume the argument is that this cut helps build the economy which increases Reveneu so no drop in tax revenue, a bit like when CGT was cut from 40% to 20%, the tax take increased. I don't know whether the tax take would increase (I actually doubt it) but that is the argument.

Anyway, to tell somebody to hand over half of all they earn over about 36k is nuts. Hardly wealthy.
 

cyberianpan

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He warned that competition for foreign investment would heat up in future, and Ireland best prospects lay in expanding the knowledge economy. He said the knowledge economy was 'human capital intensive', but there were no incentives to invest in this.
There's some , non ideological, argument for offering low tax rate for entrepeneurs / creatives / highly skilled workers to come here. Though such would have to be structured carefully so as not to effect existing such jobs here

cYp
 

bormotello

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Interesting to see an anti NAMA, anti this government economist calling for tax cuts for people on good wages.
And pro-government left wing PS unions are calling to tax poor….
His idea is to create very simple system without any tax breaks and very stable base.
 

toughbutfair

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10% on first 20k, 20% in total on next 10k and 30% in total on balance would seem fair.
 

LDF

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Flat taxes are generally thought appropriate for poor countries trying to build their economies. So, after 13 years of FF in power I would agree with Gurdgiev's idea.
 

Brenny

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Vincent Browne has constantly stated that the top 5% or so only pay about 20%(I can't remember the exact figure but it was around that) tax, through legal evasion, and that this 20% of the top 5% is actually the majority of the total tax take. If we take this as fact then the very big shots won't actually be affected, rather the next 25% or so after them.

I've recently started a job where, for the first time in my life, I will end up paying the top rate of tax (probably next year) and I have to admit that I'm looking at it all a little differently now.

All this talk of who should get taxed what avoids the bigger question of why a few people earn vast multiples of what the majority do.
 

YoungLiberal

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All this talk of who should get taxed what avoids the bigger question of why a few people earn vast multiples of what the majority do
.
Because they're doing jobs, by and large, that the vast majority of the population are not qualified and/or not capable of doing. Whereas anybody could be a bin man/cleaner/work on a till etc. It's not rocket science.

While a flat tax would be lovely in theory and would be much easier administratively, no one has enough political capital to implement such a policy.
 

Kevin Doyle

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RTÉ Business: Economist urges 20% flat tax rate

Food for thought.

I wouldnt' go that far though, everybody should pay at least 10% of their income and then those with more should pay a maximum of 33%. I paid 40% of my income last year and I'm not rich.

Interesting to see an anti NAMA, anti this government economist calling for tax cuts for people on good wages.

Yip, on his salary that would be a lovely effective payrise....does he include himself in that innovative bracket that this tax rate would supposedly incentivise.
 

cyberianpan

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Vincent Browne has constantly stated that the top 5% or so only pay about 20%(I can't remember the exact figure but it was around that) tax.
Vincent Browne is wrong there

Either he is deliberately lying, or an ignorant idiot

cYp
 

Kevin Doyle

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Vincent Browne is wrong there

Either he is deliberately lying, or an ignorant idiot

cYp
you should go on his show and challenge him directly on it so.
 

YoungLiberal

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you should go on his show and challenge him directly on it so.
...How would he get on the show? VB often comes out with facts that really aren't facts, he gets away with it on live tv because you can't pull files out of your arse to disprove it so it becomes his word v. somebody else.
 

ivnryn

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10% on first 20k, 20% in total on next 10k and 30% in total on balance would seem fair.
What about a 25% tax on all income, but combined with a EUR 3 per hour work subsidy (up to 35 hours a week). Both the tax and the subsidy would apply equally to everyone (though maybe allow a married couple to combine their subsidy, if only 1 is working).

This means that if you work 35 hours a week, you get a yearly subsidy of

35*52*3 = EUR 5460

Someone on 20k a year would pay

25% of 20k = EUR 5,000

This eliminates the poverty trap and is totally fair, since it affects everyone equally.

People on 20k or below would end up getting more from the subsidy than they pay in taxes.

However, they would still get to keep 75 cents on every Euro extra they earn, so there is no poverty trap.

The idea is to make it completely simple and have no loop holes.

Also, if the tax rate goes up, then everyone loses money, so there is an incentive to keep the tax rate low.

It would encourage wealthy people to come to Ireland from the rest of the EU.

The government spent EUR 50 billion last year, so it spends roughly EUR 10,000 per person in the country. Any extra person who earns 100k+ that we attract to the country would pay EUR 20k in income taxes alone and only cost us EUR 10k, so it is a net win, even excluding other taxes.
 

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