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Comment #5197463 by Donncha Ó Coileáin

Donncha Ó Coileáin Jun 22nd 2016, 9:45 AM #

Like here in Sweden, there should just be tax. One clean deduction from your salary. By all means have an upper rate for higher incomes. But just none of this PAYE, PRSI and USC rubbish designed just to confuse people. Three taxes to all send the money to the same place.

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Poll: Should USC be abolished?

Poll: Should USC be abolished?

Should the tax base be narrowed?

REPLIES

    Favourite Allister
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    Jun 22nd 2016, 9:57 AM

    If people got something for paying it nobody would mind so much. But it only exists as a tax to rob you and nothing else. They can bring it in over night but it takes five years tp get rid of. Absolute Bull s**t.

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    Favourite ktsiwot
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    Jun 22nd 2016, 10:14 AM

    Donncha
    That makes perfect sense, however that would be perfectly transparent and logical and that would never do.

    305
    Favourite Good Early
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    Jun 22nd 2016, 10:54 AM

    That’s it.

    The way it is they can say: “We are increasing PRSI, but were leaving the nominal rate of tax alone”

    Double speak bullsh*t..

    196
    Favourite john
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    Jun 22nd 2016, 11:12 AM

    when have they increased PRSI?

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    Favourite ktsiwot
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    Jun 22nd 2016, 11:22 AM

    John
    That is exactly revenues / governments mantra.
    They created the USC instead and that is the point. They can say PRSI has not changed and the taxation rate was say reduced, while not mentioning USC over all you still pay a lot more tax even though there is the illusion of no increase in PRSI or income tax, but you pay more.

    106
    Favourite Donal Balfe
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    Jun 22nd 2016, 11:26 AM

    They increased PRSI a few years ago when they removed the cap on it. There used to be a time if you earned over a certain amount then you didn’t pay PRSI on that. It’s gone now.

    1
    Favourite Fjordie
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    Jun 22nd 2016, 11:35 AM

    That’s exactly what Enda told his bosses in the his European people’s party ( or whatever it’s called I don’t have time to google it)

    53
    Favourite Alien8
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    Jun 22nd 2016, 12:20 PM

    and of course they also provide a website to see where every single penny that you pay goes to. no syphoning of money to pet projects. the main reason Swedes dont mind paying seemingly high levels of tax is that the govt make efforts to stay transparent.

    66
    Favourite Brinster
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    Jun 22nd 2016, 12:39 PM

    @ Donncha

    Sweden has separate Social Security (their version of PRSI) deductions.

    It may not appear on your payslip if you are on assignment there, but it is definitely there.

    It makes sense to ring fence social security payments and benefits – virtually every country does this.

    Agree that separate USC and PAYE is unnecessary.

    40
    Favourite Gina Dermody
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    Jun 22nd 2016, 12:41 PM

    They actual did change PRSI between 2012 and 2013 – the first €127 of our wages used to be exempt so that cost us €5 pw or €264 per year – it all adds up!

    52
    Favourite Dennis Collins
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    Jun 22nd 2016, 12:56 PM

    I live in Sweden, and have done for going on three years. So not here on an assignment. My payslip shows “skatt” meaning tax, and then the amount deducted. Plain as that. And it did with my previous employer too. There are no separate deducations, apart from Church Tax, which I don’t pay.

    My summary of tax payments for 2015 came in the post yesterday, showing that in 2015 as a resident of Stockholm (every “kommun” or town has slightly different rates), I paid 29.78% tax, of which 17.68% went to the city, and the remaining 12.10% went to the national purse.

    I’m fairly certain that you are right in saying that a certain amount of my taxes are ringfenced for social security, as I live in a country run on social democracy. But, I don’t need to see how my taxes are assigned. That what the National Budget is for, not my payslip.

    For ordinary citizens, the tax system should be as simple and easy to understand as they are on my payslip. The complexities should be left to someone in the Department of Finance, though with complete transparency should anyone wish to query it. No one should have to sit down in front of Citizens Information for an hour with a pen, paper and calculator, and still be unsure of how their taxes were worked out.

    Regardless of that anyway, PRSI and USC both have the word “social” in their names, but the dogs in the street know that the money they raise gets raided for a lot besides the social security system.

    85
    Favourite Dennis Collins
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    Jun 22nd 2016, 12:58 PM

    That reply was to Brinster.

    Just realised there could be confusion as somehow I ended up on my Facebook login with my English name when replying, while my original post was my Twitter login with my Irish name.

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    Favourite Brinster
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    Jun 22nd 2016, 1:27 PM

    Thanks Dennis – very clear summary and agree with the point you make on simplicity – a simple system promotes compliance and confidence.

    28
    Favourite Colm O'Reilly
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    Jun 22nd 2016, 1:51 PM

    I’m resident in Sweden and there is definitely only one single deduction on my pay slip for tax called ‘preliminär skatt’.

    Regarding USC, it would be more honest to call it the bank bailout tax.

    74
    Favourite Bobby Phelan
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    Jun 22nd 2016, 2:34 PM

    if we were gone from the eu we wouldn’t need usc lpt or iw and all so that 200 billion would be wiped

    27
    Favourite Philip
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    Jun 22nd 2016, 5:00 PM

    USC takes account of all income, so a reduction in it benefits the wealthy more

    3