Tuesday, November 3, 2009

Taxing the Rich?

Taxing the Rich? Why should the well off pay?

After reading the union's new 10 point plan for recovery coupled with the debate on Pat Kenny's the "Frontline" last night, you have to wonder do the unions actually have a clue! It was clear for all to see last night Mr Jack O'Connor, President of ICTU and head of the country's largest union SIPTU can not distinguish between the pay bill and pay cuts, as Pat Kenny attempted on numerous occasions to clarify. Also, the notion of a higher 3rd tax rate for the well off does not make sense. Below are three examples of the average total tax take for 2009 for three different employees. (Based on a single employee and standard allowances)

A single person earning €30,000 per annum will pay €4,774 in tax, prsi & income levy.
A single person earning €100,000 per annum will pay €37,996 in tax, prsi & income levy.
A single person earning €250,000 per annum will pay €111,835 in tax, prsi & income levy.

Top earners by far pay a much higher percentage of gross pay to the tax man as it stands. What possible positive affect could a 54% tax rate have at this moment in time? While some items listed on their 10 point plan make sense, there is nothing new here, no thought has gone into budgeting their plans, hence the whole exercise is pointless.

Budget 2010 will be tough and should make for an interesting 9th December. We will be reporting further on the budget as we get it. Please share our blog on facebook, twitter etc by clicking the share button below, or click the "Follow our Updates" button on the bottom of this page, you will then receive an email every time our blog is updated.

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