Monday, 7 December 2009

Congress tax menu

While a number of papers and submissions have been analyed in the media and elsewhere during the past few weeks, one paper seems to have escaped journalists' attention.

Last week ICTU published a list of 'Areas where taxes can and should be raised in the Budget' - essentially, a menu of taxes which could be levied in Wednesdays 2010 Budget. ICTU estimates that these taxes could raise over €2 billion in total.

Among their recommentations is the suggestion that more be raised from those who currently pay least, by raising the minimum effective rate on those who utilise the tax "incentive" schemes schemes. ICTU suggests that the minimum effective tax rate be raised from 20% to 35%, and that the threshold be reduced to those earning over €100,000 utilising these schemes but that the scheme be applied to pensions too.

The document is available for download here.


Mack said...

Imposing a minimum tax of 35% would reduce a worker on €22,500 net income from around €21,600 to €14,625. Harsh!

Mack said...

Ah, it's only on income above €100k, reasonable proposal.