July 28, 2009

A little quiz on Ireland’s income tax

Income tax will form more than one third of Ireland’s tax take in 2009. Yet, if the wild claims about who does or doesn’t pay what are anything to go by, the nature of Ireland’s income tax regime is poorly understood. This post includes a little quiz to see whether some key aspects of Ireland system are understood and where readers think the system should be. It also outlines some startling findings in relation to income tax, but don’t forget to answer the questions before you read the findings! Read more

July 16, 2009

An Bord Snip Nua – who is paying most?

The Bord Snip Nua report came out this afternoon, recommending €5.3bn in expenditure cuts. A closer look at the figures reveals that while Health is just about paying its way, Education’s contribution to the cuts falls well short of its relative size. Meanwhile, smaller departments such as Arts, Sports & Tourism and Community, Rural & Gaeltacht Affairs are seeing cuts of up to 40%. Read more

July 13, 2009

Public sector versus private sector pay – update

New data from the CSO show in starkest terms the pay gap between public and private sectors. The evidence is now overwhelming that public sector workers enjoy a massive salary premium, which given the state of the country’s finances can no longer be afforded. Read more

July 6, 2009

An Bord Snip Eile: Public sector cuts (Part 1)

The Irish government will spend €64bn this year, having raised barely half that amount in taxes. Realistically, public expenditure needs to be cut by about €15bn. The bulk of current expenditure is in Social Affairs, Health and Education. This post outlines how, even without major reforms, better use of taxpayers money could save €6bn across these three areas. Read more

June 29, 2009

The global recession is just a coincidence for Ireland

The latest export figures for Ireland show an increase over a year ago, a feat unique in the EU and the OECD. These only serve to reinforce the local, rather than global, circumstances of Ireland’s recession. If Ireland truly were a victim of collapsing global demand, the GDP fall this year would be closer to 20%. Read more

June 22, 2009

Can Ireland afford to increase its corporate tax rate?

Much is made of the importance of Ireland’s 12.5% headline corporate tax rate. Ireland’s effective tax rate on business is actually 15.5%, though. Increasing that to 17% still leaves Ireland as the third lowest in the OECD. Given the state of Ireland’s finances, such a move should be strongly considered. Read more

June 15, 2009

A property tax in Ireland? Yes, we can!

With talk of an imminent property tax, people are trying to make the case that ‘Ireland is different’ – it’s possible elsewhere but not here. This post outlines some of the most common difficulties people raise, and how to overcome them. Read more

June 8, 2009

Can we ignore higher corporate and property taxes?

S&P has downgraded Ireland’s debt rating – again – while latest Government figures show that Ireland faces a €12bn hole in its tax revenues this year, compared to 2007. This post outlines where the hole has come from and how it can be tackled. This will require an open debate, though, which will involve sacred cows such as Ireland’s corporate tax rate and a property tax. Read more

June 3, 2009

Up to 60,000 households threatened by negative equity and unemployment

Currently, up to one in four households with a mortgage is faced with negative equity. At the same time, one in seven is coping with unemployment. It is likely, then, that there are in the region of 20,000 homes faced with both negative equity and unemployment. If the Live Register reaches 500,000 and house prices fall another 25% in the next year, this figure could treble to 3.5% of all households. Read more

Irish Economy