High Personal Taxes Slow Down Irish Entrepreneurship
April 4, 2017 Taxation in Ireland
New information published by the consultancy group Ernst and Young has shown that entrepreneur in Ireland are dissatisfied with the rates of personal taxes in the country, claiming that the punitive rates are a hindrance to business activity.
The release by EY claimed that 72 percent of all entrepreneurs in Ireland see the country’s high level of personal taxes as a barrier to business growth.
Currently, individuals who earn in excess of EUR 32 800 in Ireland are required to pay a marginal tax rate of 40 percent, while in the UK the threshold for the highest tax rate is set at the equivalent of more than EUR 50 000.
The comparatively harsher tax burden is understood to “… create upward pressure on wages, increasing the cost of employment,” while also making it harder for businesses to compete for funding, especially when compared to overseas investors.
It was noted that 57 percent of entrepreneurs said that this year they have faced challenges when recruiting staff, and 43 percent said that they have had trouble competing for staff against large multinational companies.
However, despite the negativity against personal taxes, it was acknowledged that the corporate tax system does keep Ireland competitive internationally.