By Kieran Lynch
Man in Ireland named Joe earns €500 gross a week. Sounds ok doesn’t it?
Read this & then decide:
So: Joe Earned €500 Gross pay but it was Taxed €148 (29.6%) so his Net Income (take home pay) = €352 (Source: Price Waterhouse Cooper taxation specialists)
On his way home from work on Friday evening he thought he’d better fill his car with petrol as he needs to be able to drive to work next week so puts in €80 of petrol (of which €46.96 or 58.7% is tax & duty. Source: Revenue.ie)
He feels a bit unwell and hopes he isn’t coming down with something so realises he will need to keep his flat warm as it doesn’t have central heating. He decides he’ll have to buy 2 Bags of coal as he can’t afford to get sick. They’re expensive @ €19.50 each, but he tells himself it’s a necessary expense (€39 of which Carbon tax is €4.80 and Vat €7.29 = €12.09 taxes or 31%. Source: Greenheat.ie)
He worries that he hasn’t brought his girlfriend out on a night out for several months and he didn’t call her yesterday or today as his phone ran out of credit. He hasn’t spoken much to anyone for that matter other than work related people. He decides he’d better top up his mobile phone so he can at least keep in contact with his girlfriend and call his family. He tops his phone up by €50
(Vat €11.50 or 23%) and while he is at the counter sees a special offer of €10 for a bottle of wine or 2 for €18. He figures if he can’t afford to bring his girlfriend out for a meal, he’ll cook her a special one and treat him and her to the wine so chooses one red and one white for €18 (Duty & Vat = €9.72 or 54% tax. Source: ABFI)
He wonders if there are any decent movies on TV and decides to buy the weekend edition newspapers which has all the extra supplements and a TV guide included. He worries at spending the €3.20 on it as its not a strictly necessary expense, but then thinks.. Hey, I deserve to treat myself to a lousy newspaper, don’t I?! (Vat @ 23% = 60c)
The cashier tots up the bill and asks him for a total of €190.20.
Joe hands over his bank debit card with a sense of worry, trying to do a mental calculation as to what will be left in his account, and quickly works out it will be about €160.
His landlord will be expecting the rent tomorrow morning of €100.
Joe mentally calculates that he only has €60 to live on and pay other bills such as food, electricity, car tax, car insurance, his anti-depressant medication prescription etc. He worries that his car needs new tyres, he needs a decent pair of shoes for work, and Christmas is only 4 weeks away. His car will need its yearly NCT inspection in January too! He tries to figure out some way in which he can survive financially and sits down with a pen and paper to look at his income & expenditure.
It is then he realises that after he had already paid 29.6% of his Gross income on taxes, he had just been taxed a further 42.5% of indirect taxes on the already taxed income he used to make this evenings purchases. He has just had 72% of his earnings taken off him in taxes, leaving him barely able to survive. Joe thought about his position and came to the conclusion that in order to be able to eat this week he will have to forego his medication as he simply cannot afford it. He feels a real sense of despair and hopelessness. He can see no hope or chance of a normal future where he can get married, buy a home, raise a family. What can he offer? He can barely survive himself, yet most people consider him well off as he has a job and drives a car. He knows he is one pay packet away from becoming homeless. This fear lives inside him constantly, and he senses it is an underlying force fuelling his depression..
THIS IS THE REALITY FOR COUNTLESS 1000’s OF IRISH CITIZENS TODAY.
The ordinary citizens are being squeezed for every last cent in taxes to pay for a corrupt system that has failed the Irish people but serves the banks and those who created the financial collapse of our economy. Not one banker has been jailed, but countless thousands have been for debts they cannot afford to pay.
Thousands more have lost their homes and the Govt continues to turn a blind eye. Welcome to Ireland December 21st 2015