jenniwrenn
New member
Not a personal question, more of an economic theory/policy/politics/legal question.
We have USC/PRSI and then income tax, ...
.. in some kind of dreamland, what would happen if we (Ireland) got rid of USC/PRSI altogether, and funded whatever those expenses were fr taxes.
And then retailored the tax rates to be more progressive and incentivised personal saving and investing.
The combined income tax ladder could look something like:
97% of people who make up 80% of income would get a tax break when this is introduced - which in practice would be a benefit shared between employees and employers (cheaper labour - less money for same take home pay), which long-term would lead to more people wanting to come to work and pay taxes in Ireland leading to e.g. increase in population and increase in market size for various things, various industries becoming more efficient to run and so on.
How do you think all of this would work out?
We have USC/PRSI and then income tax, ...
.. in some kind of dreamland, what would happen if we (Ireland) got rid of USC/PRSI altogether, and funded whatever those expenses were fr taxes.
And then retailored the tax rates to be more progressive and incentivised personal saving and investing.
The combined income tax ladder could look something like:
- 0% to 20k
- 20% to 40k
- 30% to 70k
- 40% to 140k
- 50% to 250k
- 55% to 350k
- 60% to 500k
- 65% for 500k+
- investments/disposal capital gains on ETFs gets taxed same as stocks
- capital gains tax on stocks ETFs 25%
- capital gains tax on stocks/ETFs waived down to 0% for long term investors (e.g. holding shares for 5y+)
- merge occupational/PRSA income tax deferral schemes .. make them just regular bank accounts with an IBAN and with tax restrictions/implications.. e.g. max amount you can funnel into that account to defer per year.
- make lottery gains subject to income tax
- remove peanuts deductibles.
- make the above %-es and limits automatically adjusted for inflation, every year, or until new legislation.
97% of people who make up 80% of income would get a tax break when this is introduced - which in practice would be a benefit shared between employees and employers (cheaper labour - less money for same take home pay), which long-term would lead to more people wanting to come to work and pay taxes in Ireland leading to e.g. increase in population and increase in market size for various things, various industries becoming more efficient to run and so on.
How do you think all of this would work out?