Budget 2019: New 43% income tax rate could raise €433m for Government [Ireland]

Irish Times ^ | 08/20/2018 | Fiona Reddan

[Olog-hai]

The Government could raise €433 million by introducing a 43 percent income tax rate for workers earning more than €80,000 a year, an analysis by the Revenue Commissioners states.

In a document prepared in advance of October’s budget, Revenue outlines estimates on how many people will pay tax, and at what rates, come January.

Tax authorities have worked out several scenarios related to the potential cost/gain of increasing/decreasing income tax rates. […]

An individual currently earning €100,000 pays €38,801 in income tax, but if a rate of 43 percent kicked in on earnings of €80,000 and more, they would pay a further €600 in tax.

Introducing a 43 percent rate could bring the top tax rate levied on PAYE workers into line with that paid by the self-employed, who currently pay a three-percentage-point universal social charge surcharge on incomes of €100,000 and more. However, it could also be introduced at the same time as the existing top rate of tax, at 40 percent, is cut.

According to Revenue figures, cutting the existing top rate of tax to 39 percent would cost €348 million in a full year. Switching the burden from middle-income to higher-income earners could be viewed as politically palatable. …

[Stentor]

It’s Ireland. At least they can talk you into believing it’s a good idea.

[originalbuckeye]

I was NOT JOKING, when I told you all that my tax bite in Britain (while making PEANUTS at the time) was 50%. And that was the LOWEST TAX BRACKET in the mid 80’s in Britain. The Beatles weren’t joking either when they (as the British Government) asked ‘should 5% appear too small, be thankful we don’t take it all’ in their song, ‘Taxman’. Americans have NO IDEA how confiscatory taxation works. All Americans hear is FREE STUFF. And they figure ‘the Government’ will pay for all the free stuff, not realizing that the Government is US.

[WMarshal]

The productive Irish wil just leave. The tax specifically targets people who own their own business which must include many professionals that don’t need a lot of capital investment in offices and equipment. Professionals of this type can move very easily.