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THE BUDGET IS now just one sleep away…and tax cuts look set to be on the agenda.
The Health Minister Leo Varadkar let it slip last month that it would mean an “extra fiver or tenner” in your weekly pay packet.
So with all this talk of tax cuts and how the government is going to do it - we’re taking a look at exactly how much you’re paying right now and where it’s going.
PublicPolicy.ie gives the tax calculation based on a single PAYE worker in the private sector.
It uses data from the Revised Estimates, which is the most up-to-date source of Departmental spending.
A worker earning A minimum wage of €18,000 per year
A global survey of 214 countries found that Ireland has the 7th highest minimum wage pay at just over €18,000 per annum.
Someone earning €36,000 a year
The average industrial wage is €36,000. There’s talk that the government could increase the income tax band by €1,000 so that workers begin to pay the 52% rate on income over €33,800 and not €32,800 as they currently do.
Someone earning €55,000 a year
Someone earning €100,000 a year
Regardless of how much you earn – Social Programmes is where the majority of your tax money is spent. Here’s how much money goes on the biggest tax – for the four examples of earnings we used:
And here’s the breakdown of where that money goes:
Click here to view a larger version.
So that’s how much you’re paying now and tomorrow will reveal exactly where the tax cuts will be made, how much they will be and who’s going to benefit the most.
Originally published 6.44pm
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1 person on €100k pays the same amount of tax as 80 people on €18k.
1 person on €100k will have about 80 times more disposable income as a person on the minimum wage though.
80 times the work stress too
More money does not automatically mean more stress. Obviously some high earners have hugely stressful jobs but not always case. I know people on decent wage who find their job a piece of piss. And people on min wage who are under huge pressure and stress .people on big wage might just be more skilled. So I don’t think what you’re saying is fair. And people on 18k are still out doing their bit. They are not giving as much but they haven’t as much to give.
First lesson of real life that they don’t teach you in school; life is not fair.
Anyone I know earning lots of intrinsically worthless money, generally are in a different level of stress to lower paid people. They also have the workaholic bug or are tough as nails. If someone had the sense to choose a career based on their natural abilities fair play for the foresight. Most people make a balls of that by ‘following their dreams’, or partying to hard when it mattered. Generally the right person gets the job and gets paid to do it, not including the nepotism/cronyism of politics and being good mates with someone in HR.
Don’t get me wrong Paul. The tax rates above are disgustingly unfair. To take that much off middle income earners is wrong. The higher tax bracket comes in at way too low a wage. Me included in that. But I still don’t agree on your stress comment. If you work your arse off currently at your wage and you meet someone who is on four times your wage. Do you automatically conclude he works harder or has more stress. I don’t believe that’s the case. You could be under ten times the stress depending on your job and work environment. But I’m in agreement that if you worked to educate yourself and develope your skill set. You should not be penalised for it. The tax system is very unfair but the country is in the shi**er. They will be after as much as they can get for the foreseeable future.
Exactly, but this world is filled with jealous people who doesn’t understand that
Deliberately hidden in that pie-chart under pensions is the obscene amount these parasites grant themselves and their cronies in unearned ‘pensions’ every year. We should have that segment clearly broken down and exposed.
An extra fiver or tenner in my pay packet?.Ohhh thanks very much . champagne all round.
Why are the Gardai and the teachers singled out in those tables ? Just wondering
No champagne.. but would pretty much cover the water tax :/
Sovereign currency issuing states e.g. U.K. and U.S. do not need to tax at all in order to spend. The act of government spending in fact creates new money for the private sector which can then be returned to the state as wished via taxation. The Eurozone in contrast is a vast neo liberal scam designed to exploit the majority of the member state citizens.
An extra tenner a week is €520 per year. If you lost that much you’d think it was a big deal
Where does all your tax money go?…..Germany, Banks, Politicians’ pensions/wages, Senior Civil Servants’ pensions/wages et al.
Our money is going to Germany? Really?
Into the pockets of the welfare leeches.
Politicans pensions and golden handshakes.
Darryl
According to the article, using the first example of the person on €18000, of their €578.80 taxes, €75.60 goes on Irelands debt, €83.20 on education, €12.75 on the gardaí.
€191.55 goes to the DSP, of which:
32.2% or €61.67 goes on pensions
24.2% or €46.35 goes on working age income supports.
16.5% or €31.60 on disability / illness / carers
11.4% or €21.83 on children
4.6% or €8.81 on supplementary payments (rent allowance falls under this heading afaik)
So really, the bulk of the cash is most certainly not going on dole. And considering education covers everything from school buildings to teachers wages, the largest chunk of taxes would be paying Irelands debt.
I’m surprised at the amount spent on disability / illness / carers in proportion to other social programs e.g. housing. It would be interesting to see a breakdown to see how much is spent on each one, and how these percentages compare to UK / Northern Ireland. Good article.
Another 100 quid per year per person on compulsary charity ie overseas aid.
Not mentioned..
We have paid billions and still are paying in Ireland overseas aid on asylum seekers. The other 700 million we send overseas will be 1 billion by the time we pay back the loan. Our gov. Are playing lord bountiful with money we do not have.
Irish Water, clowns (politicians), over paid pensions retired clowns ( politicians), expert social welfare claimers who for generations have never worked a day in their lives, foreign scamming social welfare claimers. I assume i’ve forgotten some. We must not forget the musicians etc who have moved their millions out of this country to another country so they don’t have to pay tax in their home country. Am I pixxed off with how this country is being run in a word YES. When I win the lotto I will do the same as every politician & take my money to another country so they cant take anything else from me as I’ve paid tax since I started work as a 14yr old in the local shop that was over 40 yrs ago and am worse off financially now than I was then. You can put all the water meters outside my house but guess what I have no money to pay it so to any politician who reads this you can take a hike. Please book my room in the local prison as at least when you send me there I will have a roof & food which my tax will have paid for, at least I will be getting some of my money back
That’s a good website.
I’m surprised how small a proportion goes to servicing debt, compared to everything else.
Yes it’s a good article. It confirmed what I expected all along, middle class grafters are being screwed.
The middle class have paid a lot more tax; but feel the impact of austerity less as they never got much free from the state in the first place.
Those who were accustomed to free state services and payments feel austerity far more acutely.
So giving over €2000 to people who lost a gamble is ok with you.
they won a gamble; the entities they bought bonds in did not default. that’s how bonds work.
so 13% of all taxes taken go on servicing debt
our national debt is 181 billion, around 64 billion being bank debt
so 4.5% of tax goes on servicing the bank portion of the national debt (prob a bit more due to interest)
the tax take in total is around 55 billion so roughly 2.5 billion goes each year on servicing the banking portion of the national debt
with those type of figures I am surprised people don’t realise the big story isn’t water charges or property tax or waiting lists but the fact we are paying a bucket load for bank debt at the behest of our EU masters! But don’t leave that get in the way of private sector v public sector or taxes that are actually progressive……people are concentrating on the wrong thing as Colm McCarthy has said bring the ECB to court!!!
where is the incentive to work in this country apart from the obvious. I’m working since I’m 15 now 33 and if I lost my job tomorrow ye I’d get the dole but no other help,like the thousands it has happened to. At the moment can’t save so I would be screwed and another statistic if I defaulted on my mtg
there should be a scheme to help those who have given so much over the years to help with the burden
before I get slated there are genuine folk out there 100% close friends and family inc. I’m talking about the ones who the 9 month cut off doesn’t apply to etc …. and who have never contributed to the state.
Fully agree Sandra.
I posted a comment on FB about water charges,(I’m in favour of them)
To which I was called a scab and I was told I was exactly whats wrong with this country.
This was said by a person who described her job as “being a full time mammy”.
And This was all after I worked a 65 hour week last week.
The workers keep getting screwed to pamper the lives like the waste of space I described.
Everyone has a mammy! Wouldn’t be so quick to criticize them!
Irish water??
No transparency in where our money goes and zero responsibility for when vast amounts are wasted , the political system in this country is out of touch and grossly unfair …..I implore you if you are reading this to take some time on Nov 1st and protest against the water tax until it is overturned …..enough is enough
When you say ‘transparency’ what exactly do you mean?
How will protesting about the water charges make any difference to any of that? Indeed, how will getting rid of water charges make the system any more transparent? The money will come from the same general slush fund as everything else.
The more stuff that’s ring-fenced the better. I hope the next government keeps the property charges as well, our local councils need to have teeth, and a revenue-generating source that isn’t just development levies. They should ease up on income tax and VAT to give workers relief, instead of the populist move of getting rid of unpopular ‘new’ taxes. Less sexy, no doubt, but in my opinion, more effective in the long run. Of course governments aren’t elected, and hence don’t run on long-term issues.
Of course none of that solves the transparency problem. That’s something that requires a bit more thinking.
I do not mind paying tax’s that are fair…but just wait and see whats around the corner for the middle income earner over the next 12 months when labour will start to get cold feet the nearer we are to an election and they will start to give away the goodies to who they believe are the less well off..Come now Joan and define less well off are is that you are too busy providing my tax’s for those empty Educate Together schools
Do we really have to listen to this? Really. Im all for free speech but some ^^^^^^^ should have it revoked
Those schools are for the new irish, when they get out of direct provision.
What’s always apparent from these tax calculators is just how quickly your tax burden escalates once you go over the average industrial wage.
Well whatever school finbar went to failed catastrophically to teach him the basics of grammar, spelling and sentence construction.
I guess only Catholics should have public-funded education.
what about me getting out the pit that im in
“Im all for free speech but some should have it revoked”
So you’re not all for it then
Tax the rich!
now why would ya want to do that
We already do!
WhistleLeaks: 35 Irish Civil Servants retire on Pensions over €100,000 p.a.
2 receive €100,651.50 every year.
1 receives €102,145.73 every year
1 receives €104,361.49 every year
1 receives €104,815.35 every year
1 receives €105,039.21 every year
1 receives €106,078.25 every year
23 receive €107,228.63 every year
5 receive €118,642.80 every year
Total: 35 receive €3,783,215.52 …………… EVERY YEAR
If they each live for 20 years following retirement that is roughly a total of €70 million to keep 35 people.
Political Parties are just Private Clubs who look after their civil servant pals, jobs for family members, perks on quangos for their supporters and pass Pro-Lobby laws to favour those who fund them (e.g. the Odious Regressive Annual Car Tax Law and now the Odious Family Home Tax).
Political Parties Max Your Tax like Banks Max Your Debt. Now we know why!
Time to Bring Your Brains to the Polling Booths if you want a just, fair and successful society. “Independents Day”.
Yep, RN, and your horrifying figures do not include all the other overpaid, underworked, petty bureaucrats…nor the real thieves…the political parasites and their cronies in quangos and local government!
Just look huge pension debt the state has taken on and will only increase and their way of supporting it is by increasing the tax base through immigration but you cannot increase the population for infinity as Ireland is a finite space with finite resources. We are living in a ponzi scheme economy and solution is very simple. Our housing costs are far far to expensive and are being inflated as the state promises everyone a pension so they don’t have to save for one. Over the course of the average worker’s life, they should earn enough to completely support themselves and that means the price of property which is being purposely propped up as it is the state’s cash cow should drop dramatically. It’s time to address this ponzi scheme economy in a controlled fashion because it is going to collapse disastrously eventually.
You’re right that we can’t accept I finite immigration but we’re a long way from being full. In terms of population we (meaning both the country as a whole and republic specifically) still haven’t recovered from the famine. We need more people, for now
No we don’t. The less people we have the more resources can go around, the more space everyone can have, the bigger houses. The only time any country “needs” more people is if your economy is a ponzi scheme. What is your plan for when the country is “full” and a generation of pensions still need to be paid?
The less people we have the less people are paying for those resources. The hard core unemployed are not leaving the country, only those with ambition and skills are being forced out. The long-term free loaders are the only constant.
The more space we have? Are you serious? You think there’s slack of empty space here??
have you seen the boxes people rent in Dublin for 1200 Euro?
Hmmm so I’m paying 40 quid foreign aid. Can’t say I’m too enamoured with that. Would rather that money in my pocket than in the Swiss bank account of a third world dictator.
And how much do we pay in pensions for all our tds and ex tds ? .? ?
Are the numbers in this article correct ? Someone on 18k pays 13% of their tax to service debt but someone on 100k pays only 5% ????
I think we need to discuss the Centenarian’s Bounty. It simply takes up too much of the budget, it’s just unsustainable in the long run.
Free bottle’s of water?
Everybody knows our tax takings are stolen taking away to pY for the gambling rich elites fuc-ers
Step 1) Steal underpants.
Step 2) ???????
Step 3) Profit!!
There’s a freebie gov’ment
Foreign Aid is not covered in this article. How much does it cost taxpayers?
0.4%-0.5% of GDP, around ~€600 million. Hardly breaking the bank there.
Anyone who describes a stay at home mother as a “pampered waste of space” has issues.
Who raised you?
It fails to show how much of my tax, USC etc.. is going on bailing out failed gambers!
Hey dn your missing the plot those gamblers didn’t fail, this was a stitch up from day one.. You honestly think they would risk their fortunes without have known that every eu member state was going to be duped into paying back,, it was a very clever scheme with a debt bondage outcome which has been going on since the beginning of civilisation
It’s all going to social programmes… I thought it was paying of the bank debt!!
The banks…
Excellent point.
Of the 36k earnings I’m happy to give 172 to the Garda so they are around if I need them everything else I don’t want and should not be forced to pay for, it’s basically legalised theft
I don’t see the ‘paying for the crimes of the RCC’ icon…
To Germany.
have your say