Poor Taxes Pay More Than The Wealthy
August 29, 2014 Taxation in Ireland
DUBLIN – The results of a new study in Ireland show that cutting indirect taxes will greatly benefit low-income taxpayers, while income tax cuts will benefit the wealthy the most.
Wealthy taxpayers in Ireland pay a lower portion of their income as taxes than low-income taxpayers, according to the results of a new study published on August 28th by the Nevin Economic Research Institute (NERI).
Income taxes in Ireland are currently set at between 0.3 percent and 23 percent, however, all taxpayers are still required to pay indirect taxes, such as VAT and excise duties.
The experts of the NERI analyzed the full impact of taxes on taxpayers, and found that the lowest 10 percent of earners paid out more than 30 percent of their incomes as taxes, while the highest 10 percent of earners pay out 29.5 percent of their income.
Middle income earners paid out the lowest percentage of their incomes as taxes, facing an overall tax rate as low as 17.19 percent.
Explaining the results of the research, the author of the research Micheál Collins said that the results provide the government with more insight on the impact of taxes of different socio-economic groups, and highlight that low income individuals would benefit heavily from cuts to indirect taxes, while wealthy individuals would benefit more from cuts to income taxes.