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Posts in the "Taxation" category

What do we really mean by ‘middle earners’?

Posted on November 12, 2015 by Micheál Collins

The recent Budget, and much of the commentary which accompanied it, contained recurring references to ‘middle-earners’ – almost all of it without any basis in the various numbers available on the Irish income and earnings distribution.

New data from the Revenue Commissioners, published following Budget 2016, offers a chance for a more informed view of the structure of earnings in Ireland. The Revenue’s projection for next year is based on the most recent completed taxpayer statistics uprated to account for increase in earnings and changes in the composition of the population and labour force. The data looks at the gross income of ‘taxpayer units’ where a unit is either an individual or a jointly assessed couple.

The Revenue’s projection is summarised in the chart and shows that:

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Permanent link | Categories: IncomeTaxation

NERI Post Budget Seminar

Posted on October 22, 2015 by Daragh McCarthy

Post Budget Seminar, October 2015 - NERI Post Budget Seminar, October 2015
NERI Post Budget Seminar, October 2015

The NERI seminar series resumed yesterday with an analysis of Budget 2016—presentations from each of the three speakers are available below. The speakers outlined the budgetary choices facing Irish society with a special focus on issues related to childcare and housing. Thanks to Michael Taft ( UNITE ), John-Mark Cafferty ( Society of St. Vincent de Paul ) and Dáithi Downey ( Dublin City Council ) for their contribution. The next seminar in the series will take place on 18 November and will focus on ways to boost long-run growth in the economy— further details are available here .  

Slides

Michael Taft & ‘Clear Stark Choices—Budget 2016’ NERI Post-Budget Seminar , 21 October 2015, Dublin

John-Mark Cafferty & ‘Back to the Future’ NERI Post-Budget Seminar , 21 October 2015, Dublin

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Permanent link | Categories: Government SpendingInequalityInvestmentMacroeconomicsTaxation

Income Tax Changes since 2007 - adding it all up

Posted on October 09, 2015 by Micheál Collins

By how much have income taxes changes since 2007?

One insight is to calculate  Budget-by-Budget the net income effect for three sample household types - households which are typical of working families/people those throughout society. These are a single worker with a gross income of €40,000, a couple with one earner on a gross income of €40,000 and a couple with two earners on a gross income of €50,000. All workers are assumed to be PAYE earners.

Table: Impact of Budget Income Taxation Measures on the Post-Tax Income of Three Sample Household Types, 2007-2015 (10 Budgets)

 

Single Earner     €40,000

Couple One Earner      €40,000

Couple Two Earners     €50,000

Budget 2007

     +900

   +530

   +1,736

Budget 2008

     +434

   +210

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Permanent link | Categories: IncomeTaxation

Budget 2016, Taxes and Growth

Posted on October 08, 2015 by Tom McDonnell

QEO Autumn 2015 - Quarterly Economic Observer, Autumn 2015
Quarterly Economic Observer, Autumn 2015

Budget 2016 is close at hand and inevitably, and unfortunately, the debate has been characterised by loud and persistent campaigning by the anti-tax lobby. It seems every day brings new calls for tax breaks for one interest group or another. Yet there is limited fiscal space and we cannot afford to fritter away our precious resources in this way – we discuss the available fiscal space in depth in Section 4 of the Summer edition of the NERI's QEO. The received wisdom in the public sphere is that tax cuts raise growth. Yet each and every tax cut or tax break has an opportunity cost and theory and evidence suggests the relationship between tax cuts/breaks and economic growth is actually quite complicated.

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Permanent link | Categories: InvestmentMacroeconomicsTaxation

Employees and the Self-Employed: an earnings profile

Posted on September 16, 2015 by Micheál Collins

Despite its relevance to broad areas of public policy, detailed assessments of the structure and distribution of the income of workers in the Republic of Ireland has been limited. The latest NERI Research inBrief examines the distribution of work related earnings for both employees and the self-employed.

The key points from the analysis, which use the latest available data which is for 2013, are:

     The distribution of employee income roughly divides into quarters:

  •  26% earn less than €15,000 per annum;
  • 28% earn between €15,000 and €30,000;
  • 24.5% earn between €30,000 and €50,000; and
  • 21.5% earn more than €50,000.

     At the top of the distribution, 5% of employees earn more than €85,000 and 3.5% earn more than €100,000.

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Permanent link | Categories: IncomeInequalityTaxationWages

Little point in many mothers returning to work

Posted on September 09, 2015 by Micheál Collins

It makes little financial sense for many Irish mothers to return to work – that’s the conclusion of a new EU research study looking at the realities of the back-to-work choice faced by women across EU member states.

The study, by Olga Rastrigina and Alina Verashchagina, focuses on the financial gains for families where women return to work. It calculates the ‘Participation tax rate’ (PTR) faced by these earners, which summarises the combined effect of gains in earned gross income, payments of income taxation and social insurance contributions alongside any losses of welfare entitlements. A participation tax rate of 50% implies that half of the gains in earnings from commencing work are lost through changes to taxes and benefits.

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Permanent link | Categories: GenderInequalityJobsTaxation

The Structural Balance - Where Facts become blurred

Posted on August 05, 2015 by Tom McDonnell

Publication cover - Quarterly Economic Facts Summer 2015 - Cover image for Quarterly Economic Facts Summer 2015
Cover image for Quarterly Economic Facts Summer 2015

Ireland is expected to successfully exit the corrective arm of the Stability and Growth Pact (SGP) at the end of 2015. From 2016 onwards Irish budgetary policy will be subject to the requirements of the preventive arm of the SGP as well as being subject to national budgetary rules. The preventive arm of the SGP is assessed under two pillars.

One of these pillars is the structural balance rule. Any country not at its Medium-Term Budgetary Objective (MTO) is required to achieve a minimum improvement in the structural balance of more than 0.5 percentage points per annum.

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Permanent link | Categories: Government SpendingMacroeconomicsTaxation

Monday Blog—Review of 2014

Posted on July 27, 2015 by Tom Healy

This week's blog looks back at articles from 2014:

Topic

Date

Main Keyword

Other Keywords

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Permanent link | Categories: Government SpendingIncomeInequalityInvestmentJobsLiving wageMacroeconomicsTaxationWages

Tax Increases Since the Bailout: the facts

Posted on June 26, 2015 by Micheál Collins

The Taoiseach Enda Kenny, speaking in Brussels on Thursday, mentioned the following in the context of the ongoing negotiations regarding a debt/bailout deal for Greece:

“I pointed out at the EPP that in Ireland’s case we did not increase income tax; we did not increase VAT; we did not increase PRSI but we put up alternatives to those measures that were proposed in order to keep a pro-growth policy and to make our country competitive and to provide jobs for our people.”

His comments seem intent on highlighting the Irish-way of doing a bailout – but his memory of that bailout, including some of the adjustments that the Government he leads has delivered, is simply incorrect.

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Permanent link | Categories: Taxation

Reforming the EU Corporate Tax System

Posted on June 02, 2015 by Micheál Collins

Last week a delegation from the European Commission (the TAXE committee) visited Dublin as part of their work examining the structure of the EU corporate taxation system and the reforms it requires.

As somebody who researches various taxation issues, and as a former member of the Commission on Taxation, I was delighted to have an opportunity to meet the delegation. A summary of my remarks to the group are outlined in this blog. Overall, I made three points:

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Permanent link | Categories: Taxation

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