Irish Tax Rates and who pays on average

The “tax wedge”, shows how much people pay out of total income.

From the Irish Times
"OECD figures for 2013 show that a one-earner couple with two children on the average wage pays 37.7 per cent in total taxes in Sweden, 37.6 per cent in Finland, 27.6 per cent in Denmark and 31.2 per cent in Norway.

The corresponding figure in Ireland is 6.8 per cent" … -1.1838660

How dare they go introducing facts to the argument? That won’t go down well. What about the outrage, the outrage!!!

Any chance the comparative countries have individualised tax systems ?

I note they use the ‘one-earner couple with two children’ example.

How do we compare with double-incomes households ?
How does a single person fare in comparison ?

On a theoretical point of interest, by how much would they have to chop social welfare payments to make working worthwhile if we taxed the average wage over 30% ?

And yet on the other hand on RTE this morning:
Group seeks higher taxes for those on over €100k … m-economy/

I presume that they are using GDP rather than GNP.

I note these groups never talk about spending. We spend slightly less GDP than Sweden 48.1 v 51.2, far more of our GDP than Sweden. Where does the money go???

won#t somebody please think of the most vulnerable in society

Any way stats like these have been published before, including studies that show Irish income tax rates to be ultra progressive

However when the “tax the rich” debate raises its head they are never quoted or put to the defender of “the most vulnerable in society”

In fact you often hear the so called left quoting tax rates for “high earners” excluding USC/PRSI but incudling them when talking about those who are “hard pressed”. The latest figures I saw showed that c40% or workers pay zero income tax, and if we include USC it’s still over 25%

That’s the problem - welfare traps.

The solution is to give every resident citizen*, adult and child, a guaranteed basic income. €500/mo adult and €300/mo child would probably do it, maybe 200/mo for every child after the first 2 to account for economies of scale. Ditch state pensions, housing supports, fuel allowances, everything.

Total cost: ~€25bn. Current budget of DSP: €20bn.

Make up the difference by taxing income at average of 40% on sliding scale from 30%-50%. No tax credits, no allowances.

Welfare traps gone. Any and all work would be rewarded.

Disclaimer: I have no idea if these numbers add up.

(* + tax resident foreigners with >50k of total accumulated tax contributions).

See 2012 official Income Distribution Statistics here … index.html

Nat O’Connor (TASC) was on the radio this morning talking about adding a 3rd tax band at 48% for people earning over 100k. He then decided to ignore the USC when adding that the 48% band would be only slightly higher then the 45% top band in the UK (again, ignoring the fact that the 45% band in the UK kicks in at Stg£150,000.)

Figures below are a year out of date but doubt they’ve changed too much

Nat O’Connor is a tit.

I propose disbanding TASC and using the money to fund it for free ice-cream. As I am lactose intolerant, it is an entirely selfless move on my part.

TASC would want you to form a Department of Ice Cream Provision

  • means testing
  • compliance department
  • equality officer
  • mission statement


Yet another graph that fails to support the 52% claim repeated so often here.

Someone is wrong: it’s either the pinsters or those rotters who keep producing graphs that don’t show anyone paying 52%.

Joe with all due respect I think you are wilfully confusing Effective Rate and Marginal Rate.

A lot of pinsters pay Marginal rates of >56%, if you include the pension levy I’m on a marginal rate of over 59%

Effective rate is something entirely different, thats what the above graph is referring to.

Joe is well aware of that.