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Tax Reform Proposals

SamsonS

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http://www.finance.gov.ie/sites/default/files/Income Tax Reform Plan-FINAL_0.pdf

THis went up on Finance yesterday, lays out the options for changes in income taxes in the budget. Apparently this is first time its been made publicly available in advance of a budget.

In the main the options seem to focus on changes to USC. Three options being proposed that will cost around 1.8b over the period 2017-2020

The options are reduce the rates, 2nd option increase band ceilings, and 3rd increasing exemption ceilings.

Sums involved etc start at around page 45, with a mass of examples of how it might impact different household types in the appendices.

Any preferences? (and before people say it should be scrapped, remember its the most progressive tax we have, the more you earn the more you pay, so srapping it gives the guy on 200k a massive salary increase and the guy on 20k bugger all!)
 


ger12

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Leave USC alone. FG are eyeing the next election the nasty hobbits.
 

ShoutingIsLeadership

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What part of the GE result do they not get? People want better public services...the list of inadequacies is endless.

Why are we proposing income tax cuts when employment levels are fine, we are borrowing, and there are a litany of funding shortages in the provision of public services?
 

hammer

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USC must continue to be cut. It is excessive.

Sure wont the savings be spent in the domestic economy.
 

hammer

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Samson, did you notice that the tax proposals published yesterday were missed by 99% of the p.ie posters ?
 

hammer

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I think they should also index link personal & paye tax credits.

Make work PAY.

They should also increase standard rate tax band from €33,800

Way too low.
 

SamsonS

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Right, the extensive poll has been completed.

66% of respondents want no changes to income tax policy.
33% of respondents want USC cut.
Margin of error is 33%

I would like to thank all 3 respondents for their time in participating in the poll and your views will be sent to Dept of Finance for shredding and consideration, sorry, consideration then shredding........
 

daveL

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What part of the GE result do they not get? People want better public services...the list of inadequacies is endless.

Why are we proposing income tax cuts when employment levels are fine, we are borrowing, and there are a litany of funding shortages in the provision of public services?
Of course people want 'services' - everyone does. Especially in Ireland where the majority of citizens are supported directly by the state in one form or another.

But that doesn't excuse 50% plus marginal tax rates.
 

Watcher2

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What part of the GE result do they not get? People want better public services...the list of inadequacies is endless.

Why are we proposing income tax cuts when employment levels are fine, we are borrowing, and there are a litany of funding shortages in the provision of public services?
Maybe they too believe there will be an election shortly.

Scraping USC is fvcking ludicrous. They need to reduce the floor again so everyone earning pays something. In such a "benefits" society as we have, regardless of how small you might think those benefits are, we need to have everyone contributing something. The last thing we need is to move any closer to the FF heady days when almost 50% of people earning did not pay any tax. It matters not how low your pay is, you should be paying something in tax.
 

SamsonS

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Maybe they too believe there will be an election shortly.

Scraping USC is fvcking ludicrous. They need to reduce the floor again so everyone earning pays something. In such a "benefits" society as we have, regardless of how small you might think those benefits are, we need to have everyone contributing something. The last thing we need is to move any closer to the FF heady days when almost 50% of people earning did not pay any tax. It matters not how low your pay is, you should be paying something in tax.
The proposals are not that USC will be scrapped. Your idea, reduce the floor so that more people are paying USC is not part of the proposals under consideration, the three options being looked at are a gradual reduction in the rates, would mean those currently paying USC continue to pay but at a lower rate.

The second scenario, increase band celings,
Third scenario is increase exemption threshold would mean less people paying USC, and envisages big jumps in threshold in 2018 and 2019, where does earning 36k or lower would not be paying USC (that's up from 13k in 2015).
 

ger12

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Samson, did you notice that the tax proposals published yesterday were missed by 99% of the p.ie posters ?
Nah, just weren't bothered coming on here to annoy your head.
 

wombat

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I wonder how many of the P.ie devotees of income taxes are actually employed?
 

Therightroad

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USC has to be kept and increased for high earners to provide more Housing for settled criminals sorry travellers & Halting Sites & areas for Travellers Horses & Free legal Aid & sulky Race Tracks & loads of Social welfare & money for compo claims etc etc
 

Uganda

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What part of the GE result do they not get? People want better public services...the list of inadequacies is endless.

Why are we proposing income tax cuts when employment levels are fine, we are borrowing, and there are a litany of funding shortages in the provision of public services?
You are assuming that because we pay more tax we get better public services.

Do you really believe that if we spent an extra, say, €2 billion on health that we would notice any improvement?
 

Watcher2

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The proposals are not that USC will be scrapped. Your idea, reduce the floor so that more people are paying USC is not part of the proposals under consideration, the three options being looked at are a gradual reduction in the rates, would mean those currently paying USC continue to pay but at a lower rate.

The second scenario, increase band celings,
Third scenario is increase exemption threshold would mean less people paying USC, and envisages big jumps in threshold in 2018 and 2019, where does earning 36k or lower would not be paying USC (that's up from 13k in 2015).
Yes, I know, however limiting USC is a terrible idea. None of the proposals are things I agree with.

Edit, unless the band widening has to do with the ludicrously low two paye bands, it's more hokum election buying.
 
Last edited:

hammer

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USC must be reduced to about 2% on all income.

Sorted. A solidarity type levy. We all pay something.
 

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