Comments on: Are Irish workers undertaxed?

By: Banning unemployed people from the Lottery - should we follow this German example? - Page 3

Sun, 08 May 2011 19:32:21 +0000

[...] do not pay a fair share of their income in tax. Your attitude is typical of your type. Are Irish workers undertaxed? | Ronan Lyons Please examine actual statistics before spouting prejudiced [...]

By: Exchequer deficit in 2010 was

Exchequer deficit in 2010 was — Wed, 05 Jan 2011 18:02:07 +0000

[...] countries like Sweden or Denmark, which people on the left cite as examples we should follow. Are Irish workers undertaxed? | Ronan Lyons A little quiz on Ireland’s income tax | Ronan Lyons EU norm means everyone paying [...]

By: kosogun

kosogun — Fri, 18 Dec 2009 03:10:10 +0000

I saw your comment on the Economist report on Ireland’s budget Dec 12 2009 – Ireland shows the rest of Europe what austerity really means.
Since you are an economist and you support the government budget, please tell me why the budget does not seriously tackle and reform welfare.
Why will they not tackle utility companies both private and semi-state bodies?
Why are they holding on to Anglo Irish bank? is it not clear that that bank is a black hole.
Do your reaserch you will find out that the rest of the banks that are being supported are telling thier staff to be patient about bonus. It will all be paid (including arreas) when it is politically expedient to do so.
Why will you trust this government? I think what they have done is a con job, window dressing we will call it in Accounting.
I am sure more pains are coming and it is not this goververnment that will tackle it. They are hypocrates. They will only do what will make them popular at the expense of the general public.

By: Dara

Dara — Fri, 23 Oct 2009 09:36:14 +0000

On VAT – we pay 21.5% VAT vs an EU average of 18%. If you spend every cent you earned on top-rate VAT items (ie no food, rent, or mortgage) it adds just 3.5% to your tax rate vs the EU average. So tax rates including VAT are still well below average surely.

By: A little quiz on Ireland’s income tax | Ronan Lyons

A little quiz on Ireland’s income tax | Ronan Lyons — Tue, 28 Jul 2009 07:32:40 +0000

[...] just 4% in income tax! As I argued before, we seem to have got ourselves into a situation where the typical Irish worker pays hardly any income tax and yet seems to think they are heavily [...]

By: ronanlyons

ronanlyons — Fri, 01 May 2009 15:57:56 +0000

Hi Ciaran,
Thanks for the comment – title does try and get the worker bit, rather than consumer bit, but point taken.
Plus, am hoping to come back in time and examine other aspects of the taxation system, such as indirect tax. Will check out that post re reliefs now,

By: Ciaran Daly

Ciaran Daly — Fri, 01 May 2009 15:50:40 +0000

I think you hit the nail on the head, “from first glance” it looks like we’re undertaxed. I think you’ve confused ‘tax’ with ‘income tax’. The woman on liveline might pay low (or no) income tax but she’s subject to 21.5% VAT, that is huge by any standard and deeply unfair.

If you want to raise taxes, the best way would surely be to abolish all the reliefs and benefits.

http://libertyireland.wordpress.com/2009/05/01/mortgage-interest-relief/

By: ronanlyons

ronanlyons — Tue, 28 Apr 2009 17:04:48 +0000

Hi Anthony,

You’re right – the government did actively choose indirect taxation as a strategy at some point (in the mid-1990s I think). There are probably two somewhat separate issues within that – sustainability of tax receipts, and the regressiveness or progressiveness of a tax system. Both were somewhat hidden by the consensus and the seemingly endless boom that had us all fooled!

By: Sue

Sue — Mon, 27 Apr 2009 19:20:44 +0000

Makes perfect sense. Thanks Ronan.

By: Anthony Bermingham

Anthony Bermingham — Mon, 27 Apr 2009 15:12:20 +0000

Of course, in the eighties we had high income taxes with very low entry thresholds. Not just to the lower rates. The bands weren’t index linked so gradually more and more workers into the higher rates. The govenment just kept squeezing until the well ran dry and there was massive public reaction, culminating in the PAYE March in Dublin.

There was a commission on taxation, or some such, that concluded that the high income tax rates were a tax on jobs – there was no incentive to move from the dole to highly taxed jobs. So the recommendation was to move from income taxes to indirect taxes, VAT, excise, VRT, etc. So, in fairness to past governments, in this regard they were following policies upon which there was a consensus and which, for a long while, seemed to work.

But, that was before the property bubble tempted the government with easy pickings and the policy was probably pushed too far!