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Why Sweden taxes the low paid and why Ireland shouldn't


patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,693
Swedes believes in the principle that everyone working should pay some income tax. They probably don't have a problem with social welfare disincentivising work:Very high standards of universal education and advanced job training enable people to find highly paid jobs,while the massively generous social welfare state helps the working poor with day care,good public transport,free medical care etc.

By contrast,Ireland in the early 90s had a massive functional illiteracy problem with about 23% of the population functionally illiterate according to the comprehensive International Literacy Survey and the level is probably still high today.Judging by FAS scandals,the job training programmes are ineffective. However,during the Celtic Tiger jobs boom these shortcomings could be overlooked.

Given today's high unemployment,efficient retraining programmes for the unemployed and a willingness to relocate will be critical for finding work in the future. However,Ireland's very generous social welfare benefits for families are a disincentive for many to retrain or relocate,especially those with low or modest skills or literacy who can only aspire to low paid jobs paying about €14,000 a year on the minimum wage.So to increase taxes on low pay would add considerably to the underclass of long term welfare dependants,a social disaster.
 
Last edited:
J

john moriarty

Only if those welfare
payments remain at
their generous levels.
Time it; say lessening
the amount over a 12
month period, & maybe
you'll begin to see a
drop off in habits.
 

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,693
Job seekers' benefits cut after a year in the UK

Only if those welfare
payments remain at
their generous levels.
Time it; say lessening
the amount over a 12
month period, & maybe
you'll begin to see a
drop off in habits.
Jobseekers in the UK experience a cut in benefits after a year. The idea is to provide an incentive to find a job.
 
Joined
Aug 6, 2007
Messages
22,911
All income should be taxed from whatever source.

If you get something for nothing then you don't give a toss about it until someone starts talking about taking it away.

Limits in welfare at 2/3 of average working wage for a family should be the standard.

Welfare cuture disencentives work.
 
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