What is truth?

Posts tagged ‘Tax rate’

The rich are getting richer and the poor are getting poorer!

The rich are getting richer and the poor are getting poorer – it’s official, says Richard Boyd Barrett

PBPA TD lashes gross unfairness and inequality in the distribution of austerity burden and calls for radical shift in tax policy

Richard Boyd Barrett TD for the People Before Profit Alliance/ULA challenged Taoiseach Enda Kenny today during leaders questions over the “gross inequality and unfairness” in the manner in which “the pain of austerity policies has been imposed on the least well-off and most vulnerable sections of Irish society, while the wealthiest people in the country have been protected and in some cases have actually increased their incomes.

Deputy Boyd Barrett’s challenge to the Taoiseach comes in the aftermath of Social Justice Ireland’s recent report showing that the poorest households in Irish society have seen their disposable incomes decline by 18% whereas the wealthiest households have seen their incomes actually rise by 4%.

Deputy Boyd Barrett also referred to answers he received recently from the Minister for Finance in response to Parliamentary Questions on the annual incomes of the highest earners in the country and the levels of effective tax paid.

The answers provided by the Minister to questions submitted by Deputy Boyd Barrett detailed the earnings the top 10,000, top 1%, top 10%, top 20% of earners and showed that these very high earners are only paying effective income tax rates of between 29% and 21%. For example, the top 10,000 earners with total earnings of €5.959 billion and average earnings of €595,905 per year paid only €1.715 billion in income tax, an effective tax rate of 29%. The top 10% of earners with total earnings of €29.6 billion and average earnings of €136,710 per year only paid €7.08 billion in income tax, an effective rate of 24%.

Richard Boyd Barrett said: “It’s official – what ordinary people knew all along, what we have been saying in the Dail for the last year – the rich are getting richer and the poor are getting poorer.

These facts and figures from social justice Ireland and the answer to my own Parliamentary questions demonstrate, in the most dramatic fashion, that working people and the poor are getting it in the neck with cuts and austerity while the very wealthiest in our society are being protected.

All the promises in the programme for government about “protecting the vulnerable and to burden sharing on an equitable basis” have now been fully exposed as hollow.

There is no equity. There is no burden-sharing. Rather, this government like the last government are using the atmosphere of recession and crisis to facilitate a further transfer of wealth from those who have virtually nothing to those who have virtually everything.

Contrary to the the constant government mantra that there is “no pot of gold” and their constant dismissal of our calls for higher taxes on the very wealthy, we discover that there is a massive and growing pot of gold in the hands of the super-rich in our society.

If for example we raised the effective tax rate on the highest 20% of earners to between 40 and 50 per cent, we could raise somewhere between five and six billion in extra taxes. This would still leave this group very well-off but it would allow us to halt and reverse all the cuts imposed on low and middle income earners, on the poor and on the vulnerable.

The government have constantly claimed they have no choices, that austerity and pain for ordinary people was a tragic necessity. We can now see definitively that that has been one big lie. Rather they have chosen to cold-bloodedly to attack the poor and protect the super-rich. That’s why it is vital that ordinary people , who are the victims of these unjust policies, begin to mobilise onto the streets. Only people power, protests and strikes can challenge this obscene injustice.

source: http://richardboydbarrett.ie/2012/07/17/the-rich-are-getting-richer-and-the-poor-are-getting-poorer/

comment from Liam:

 

to annmphelan, Cllr

 

 

 

 

 

 

Hi Ann,

Just in case you (and the Labour Party) missed this….. I cannot believe what the ILP has come to – the party I supported for 40 years!

It’s a sad day for the party and a sad day for the country …not the whole country of course; just the bottom 25% that (used to) support the Labour Party.

I guess it’s now just the public / /civil service that supports the party; oh, hang on a minute: don’t they vote for the FF…ers?

Liam

Fool me once, shame on you. Fool me twice, shame on me. Why Ireland must veto any second bailout for Greece.

By Namawinelake

Irish Minister for Finance, Michael Noonan signalled yesterday in the Dail that the attempted renegotiation ofIreland’s IMF/EU bailout deal had effectively come to an end, withFrancevetoing any easing of the interest rate charged without a specified quid pro quo : an increase in Ireland’s corporation tax rate. Minister Noonan, with what seemed like a flash of anger as much as resolve, made it clear that the existing corporation tax arrangements were vital to Ireland’s future, not least our ability to repay debt. And he was not going to bargain that away for a reduction in interest rates which might only be worth €148-200m per annum.
read full article at source:http://namawinelake.wordpress.com/2011/06/08/fool-me-once-shame-on-you-fool-me-twice-shame-on-me-why-ireland-must-veto-any-second-bailout-for-greece/

Comment:

Another promise by the new government regained on.

I do not agree, Ireland needs friends and we certainly do not need to gang up on Greece.

The citizens of Greece are just as much victims of a corrupt political system as we are ourselves .We should in fact have come together with the rest of the PIGS and created group of our own .There is strength in numbers. And maybe with real patriots we would have been better able to exploit the real concerns of the German and French would be European masters namely the euro currency and its stability

 First of all we the people did not agree to any bailout, we the people weren’t asked, we the people did not have any choice our corrupt incompetent at best politicians  agreed this utter con job.I still maintain these debts are from private companies and their shareholders and the gamblers that supported them .These debts are not the problem of the Irish people .Under international law these debts are classified as odious debts and we as a people are not obliged to pay them back. It’s a bit rich of the French and German politicians to make demands on us. We are in fact bailing them out their corrupt banks  .if you haven’t do so already please read the earlier posting by  By MICHAEL HUDSON entitled “How Financial Oligarchy Replaces Democracy” for a better insight on what is really happening here .

If there was ever a reason for a revolution in this country it is now plain we cannot thrust our own gutless politicians and certainly not anybody from Europe .Our country has been betrayed and the new government has collaborated with  the crooks in the EU and IMF .They are a disgrace and should be hounded from office  by all possible means.

The Laffer Curve

The current government’s policy of taxing workers and business up to the gills is only going to bring about less revenue I can see this already happening .I called a plumber two days ago to give me a quote on some pipe work I was thinking of getting done he quoted me two prices one cash price and one with a receipt needleless to say the cash price quote was a good 28 % cheaper now extrapolate that throughout the country. Taxing people so much doesn’t make sense ask Michael O Leary everybody knows he wants as much profit for Ryan air as possible but does he increases the prices he charges for flights no, he continues cutting his prices. That is why his company is one of the  largest airlines in the world.  

I rest my case on Taxes , this budget is a disaster for Ireland

Irish Budget 2010

Irish Budget 2010

Is It Time to Reinvent Fairness? This December’s budget must be one of the most regressive budgets in the history of the Irish State. (See definition below). As a result of the proposed changes people on 85,000 to 250,000 Euro per annum will pay an additional 1-2% in tax. However, folks on 17,000 Euro per annum will pay an additional 12%. This policy is grossly unbalanced and unfair particularly when you realize that those in charge of the many 850 quangos that exist in the State are hopelessly overpaid.

For example: 1. Head of ESB: €752,568 2.

Head of Dublin Airport Authority: €568,100 3.

Head of An Post: €500,000 4.

Head of Coillte, the forestry commission €417,000 5.

Head of Voluntary Health Insurance: €412,003 6.

Head of Bord Gais: €394,000 7.

Head of Bord na Mona (turf energy agency): €392,000 8.

Head of RTE: (TV): €326,000 9.

Head of CIE (transport): €252,416 10.

Head of Health Services Executive: €335,913

If these executive rates were modified and the 850 quangos abolished the savings would more that allow a faired distribution of the tax burden? Why was this not done? The current policy being adopted by Fianna Fail and the Greens seems to be pushing Irish politics further to the left as people are becoming increasingly shocked and disillusioned by the gross inequity of it all. If this trend continues, Labour, National Sinn Fein, The People before Profit Alliance, Independent Socialists and Non-Aligned Independents will form the next Irish government. This will render any real reform of the bloated State sector practically impossible and could herald more pain on an already beleaguered Irish middle class. Alternatives that could bring about a fairer taxation and a semi-state /public sector overhaul, plus banking restructure involving a new Irish commercial bank, enterprise development and focused retraining for the unemployed may not get the chance it so badly deserves.

Regressive Taxation Policy Definition:

A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. In terms of individual income and wealth, a regressive tax imposes a greater burden (relative to resources) on the poor than on the rich — there is an inverse relationship between the tax rate and the taxpayer’s ability to pay as measured by assets, consumption, or income. It can be applied to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. Regressive taxes tend to reduce the tax incidence of people with higher ability-to-pay, as they shift the incidence disproportionately to those with lower ability-to-pay.

The opposite of a regressive tax is a progressive tax, where the marginal tax rate increases as the amount subject to taxation increases. In between is a flat or proportional tax, where the tax rate is fixed as the amount subject to taxation increases. The term is frequently applied in reference to fixed taxes, where every person has to pay the same amount of money. The regressivity of a particular tax often depends on the propensity of the tax payers to engage in the taxed activity relative to their income.

 In other words, if the activity being taxed is more likely to be carried out by the poor and less likely to be carried out by the rich, then the tax may be considered regressive. To determine whether a tax is regressive, the income-elasticity of the good being taxed as well as the income-substitution effect must be considered.

Machholz

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