Do we have a Renua thread?
I like their tax simplification ideas.
If they weren’t so instinctively anti-republican I’d look a bit closer at voting for them.
Are they essentially FG NUA ?
Flat tax and no motortax (pay as you drive) sounds like great ideas
The whole tax system is waaaaaaaayyyy too complicated, between PRSI, PAYE, USC, credits and all sorts of loopholes it a f******* minefield for a normal person to understand
This is complete bollocks. Under this proposal EVERYONE pays less tax except the poor? Has this proposal been costed by the Department of Finance? Of course it hasn’t. It’s bullshit. Listening to Creighton she was suggesting that Tax Non Doms would be attracted back from Malta by this proposal, but she fails to grasp that the Maltese flat tax rate is only 15%, and anyway, the wealthiest will always find ways to avoid paying tax.
Tax the poorest more so that the Billionaires might make a contribution? Bullshit.
Of course the tax code needs reforming, but what is also needed in wealth redistribution. It can happen via the tax code, or it can happen through violence, but transferring more wealth to the wealthy will ultimately lead to the latter.
How do you “find a way to pay less tax” if you abolish reliefs. Tax laws don’t need “reforming” they need ripping up. Whole sections of the taxes acts need to be gone. Tax should not be used in the way that it has been to tinker with the economy and cause chaos.
The poor are not going to organise violence to redistribute wealth. Just not going to happen. If working people’s taxes go down that’s all that matters.
Psychologically, it’s interesting.
Indirect taxes feel more like an imposition or a creaming off, while direct taxes are easier to rationalise as a contribution. This is one of the reasons why I prefer the latter to the former. In an ideal world (unrealistically ideal, I admit), I’d be tempted to abolish everything except income tax, capital gains/capital acquisition tax and inheritance tax.
VAT always struck me as especially pernicious, and not so much because as some people claim, that it disproportionately affects the poor (it probably doesn’t, given the wide range of exemptions and reduced rates for essentials, so its effect is probably proportionately greatest on people with middling incomes), but because it taxes activity and productivity, rather than personal wealth acquisition.
I wonder if a flat tax combined with appropriate regressive unavoidable consumption taxes on the things that rich people buy would be the best solution.
You tax income lightly. You tax helicopters heavily.
My only fear is that jmc might get over his contempt for the place and be tempted back
Lucinda was on the radio saying how welfare would be protected. Those on low pay would obviously have to pay 23% thereby penalizing work and rewarding Dole recipients.Where is the logic in that.The flat tax crap is obviously a ruse for cutting expenditure on health, education, police excetera. But definitely not welfare.
I understood there was to be a 3 year moratorium on welfare dependent and a modest net income threshold under which the flat tax wouldn’t kick in. Granted that was from renua’s budget submission and not her article in the IT.
Firstly, tax reliefs will never be abolished. It won’t happen. Why? Because tax reliefs are actually a fairly legitimate way to drive private sector investment into strategic sectors. Of course they have been abused by generations of political morons (FG/FF) so that now they have become a massive tax avoidance scheme for the wealthy, and reform is needed to restructure them, but suggesting a wholesale abolition of all tax reliefs is nonsense.
This obsession about trying to make the poor suffer more is obscene, and it WILL end in violence. It always does.
Ok. So it’s bullshit. It has Eddie Hobbes fingerprints all over it. Why am I wasting my time discussing it?
We have a very progressive taxation system. To compensate for people on low incomes paying virtually no tax, the highest tax rate kicks in at an extremely low level.
People on very low wages derive much of their income from state supports. They receive more in services than they pay for.
Regardless of the exact configuration of the tax system, people on lower incomes will always tend to receive more in services than they pay for. If their taxes increase, their supports will have to increase to preserve the incentive to work and prevent welfare traps.
We live in an extremely expensive country despite having a fairly large “underclass”.
I think the solution begins with admitting that we’re not “Switzerland on the Atlantic”.