Lower tax rates? what could go wrong...

[jenniwrenn]

@jdsenn Lots of people do it, there's plenty of places around the world with tax transparent or opaque 0% tax entities and hybrid mismatches to take advantage of.

This is in addition to the more proverbial "I'll expense a coffee machine for the office", or various personal electronic, or cell phone/home internet bills because the business decides that ability to work from home periodically is essential to the business - all of which end up reducing the amount of company money flowing through personal income taxes.

 

[evaline]

@jenniwrenn The very high rates you posted (+50% tax) kicks in much earlier than that. While, granted, it's probably a not a lot of people who are affected, but they do pay a lot of tax.

Some of them might not be able to move and to keep their job, so sure, maybe some people will pay those very high taxes. But I'd think it's more likely that over time, those positions will be located in other jurisdictions instead where you can still support the Irish market if needed (say UK).

 

[jenniwrenn]

@evaline yeah, some will move, some will stay.

Looking at UK and Scotland they have roughly 0%,20%,40%,50% at roughly 12k,40k,125k income

so until 250k .. my rates might be lower -- but it's similar overall.

I think the question is whether this 500k+ earner is a single business person/unit ... or do they also have e.g. a 100 people paid

 

[whatnow]

@jenniwrenn Had a chat with a local FG lad a few weeks ago and asked him some questions about CGT/Deemed Disposal. He said that it's basically a non-issue in their eyes. Gets brought up from time to time but never acted on. On the other hand, if SF get voted in there's a good chance the CGT becomes even worse than it already is.

To put it bluntly. We're not getting what we want anytime soon as far as long term saving/investing goes.

 

[gardenlady]

@whatnow

Had a chat with a local FG lad a few weeks ago and asked him some questions about CGT/Deemed Disposal. He said that it's basically a non-issue in their eyes

He's not wrong. The government was taking public submissions on this over the summer and there was only about 100 submissions.

 

[morgandeb]

@whatnow Unfortunately, investing in anything other than property is seen as dishonest in Ireland.

 

[lisa1971]

@morgandeb Which is dumb as you are pricing other people out that way.

 

[jilljilljill]

@whatnow The Irish are illiterate when it comes to trading so the politicians don't see the publicity benefits of fixing it.

 

[wabi]

@jenniwrenn Don't forget that all taxes with fixed threshold increase every year due to inflation and wage increase. The government pretend they are cutting tax with changes to the threshold but they are really just correcting for inflation.

 

[jenniwrenn]

@wabi Hmm maybe the trouble is that "Housing and Utilities" are only weighed at 12%/14% of expenses, but the costs went up 60% since 2021.

... and then for people looking to buy, residential property prices more or less doubled since 2014.

I'm just browsing tradingview graphs and some CSO published PDFs and trying to figure out why it feels like the 40% threshold should have gone up more (maybe it should be closer to 60-70k).

I'm not sure 14% percent on housing and utilities in CPI is realistic.

 

[killalljewishpeople2934]

@jenniwrenn ah the classic - I've got a bright idea for someone else to pay for me to live in society. Let me guess your political party ...

 

[jenniwrenn]

@killalljewishpeople2934 Yeah,.. no.

1. I'm not into politics (I probably should vote, but so far I've just never voted).
2. Also, actually, according to rates I proposed above, I'd end up paying just a bit more than today (probably).

It's more that I've had friends/acquaintances not from Ireland, recently asking me about moving to Dublin for work, both cases after getting job offers. (one was 38k, other 60k), and another person asking about moving to Ireland to retire (buy a house in cash or buy land and do a build somewhere in Ireland)... and I'm just finding Ireland hard to recommend in good concience..

to a point where I myself am now looking elsewhere to retire, .. or perhaps just move.

These 2 folks (one refused, other still negotiating job offer) are at a relatively early stage in their careers (38k late 20s single; 60k 31yo+wife+2 small kids). On paper at first glance their offers looked like raises compared to their current income, but with taxes+weird housing situation it gets tricky. ... and then there's the added hassle of moving anywhere.