How the ‘social charge’ makes Cowen’s a Millionnaire’s budget…

I can’t vouch for the detail of this, but Michael is usually pretty reliable with figures

Budget 2011 provides considerable tax breaks for those on very high non-wage incomes. If you happen to be a millionaire you are nearly 6 percent better off with Fianna Fail’s budget. How does this occur?

This is how Deloitte breaks down the millionaire’s budget. They will pay €11,936 more on income tax and PRSI. However, under the Universal Social Charge, they pay €34,931 less than under the Health and Income levies which the Charge replaces. That really puts the ‘Social’ in Universal Social Charge.

And at the risk of totally creeping you out, the ESRI estimates that there will be no wage-growth next year. However, non-wage income (rents, dividends, interest, and self-employment) will grow by 29 percent. So those very high non-wage earners can look forward to not only an increase in their incomes, but tax breaks on top of that.

So that’s one good question for Mary Wilson’s Drivetime programme this evening… Go and read all of it, with pretty graphs and all..

  • Mack

    That is truly shocking if true – worth pointing out that the Deloitte calculator seems to have different results that the one @ thejournal.ie and KPMG.

  • Mack

    http://taxcalc.eu/ suggests people earning €1,000,000 will take a hit of — > a couple of hundred euro!

  • Rory Carr

    Mack,
    The Deloitte calculation, if correct, reveals something truly scandalous and indicates a last desperate fling of cronymism by those who know they must look towards the comfortable super-rich, to whom they have been kind, for their future rewards. We should hear the creaking of tumbrils if this information gains hold in the public imagination.

    p.s. Do you have a link to the KPMG figures or are you able to let us know how their calculations pan out or how, if at all, they differ ?

  • pippakin

    If correct it is the ultimate betrayal. Everyone already knows it is the lower paid, unemployed and mothers who are being hit the hardest. To find the rich are a protected species could well be the last straw.

    Having said that it is so important it does need confirmation, hopefully from several sources.

  • Greenflag

    I hate to say this being a longer term FF supporter but I see this budget as FF’s thank you and goodbye for the present to their wealthiest supporters . The ‘suckers’ at the bottom of the FF electoral pyramid hopefully will learn something from this ‘naked’ highway robbery on the part of the Irish soldiers of me fein 🙁 Its not often I’m actually sickened by the actions of politicians in policy areas but they have lost my vote and I suspect a couple of hundred thousand more come the election .

    GUBU -again 🙁

    You might think the opposition should have made a bigger deal of this but they’d rather just wait their turn for the trough 🙁

    Tumbrils

  • Mack

    KPMG –
    http://www.kpmg.ie/budget2011/calculator/index.htm

    It only covers up to €200k (so compare to deloitte on the same)

    TheJournal –

    http://www.thejournal.ie/budget-calculator-2011/#basic-calculator

  • Mack

    There is some more information here –

    http://www.politics.ie/economy/145380-single-person-earning-1-million-will-pay-extra-8-day-tax.html

    The absolute drops in pay are far too small at the top level.
    The effective tax rate prior to any tax shelters is high enough. In my view if they (tax shelters) for people earnign €1,000,000 are all closed off then that would be harsh enough (closing off pensions would likely see them earn €100,000s less – taxcalc.eu suggests this hasn’t been closed of for earners at that level).

  • Mack

    Although I think Michael’s numbers might be for the self-employed.

    They have historically been under a different tax / benefit regime than the rest of us. I.e. it’s much harder for them to get social security if their work dries up..

  • Alias

    Post-nationalist Ireland long ago stopped being a republic and became a region of the EU, and now a plutocracy. It is long past time for the people to reclaim their country, and to rule it once again in their national interest.

    The public are being forced by the EU in collusion with their own treasonous government to bail-out the private corporations and the wealthy elite that comprise the eurosystem via income and indirect taxation, whereas corporations are to avoid the cost of the burden of bailing them out by selling tax increases on corporations as the greatest evil that is to be avoided at all cost.

    Sorry, but if these wealthy elite want to be bailed-out then it is they who should have to pay for it, not the poor worker or pensioner who doesn’t have a fiver in the bank never mind 50 million…

  • Organized Rage

    Mick F

    Good piece of work, But!

    Come on Guys pleaseeeeee, we have been telling you this for weeks, but hey, we were trapped in a time warp talking out dated ideological nonsense.

    Political parties serve interests and have always done so. Leopards rarely change their spots. Why would a party which has been led by cretins who have been in bed with shysters and greedy crooks for decades, and crashed the economy due to this closeness, whilst enriching themselves at the same time, suddenly become the font of ‘fairness.’ He writes spitting out the word)

    Christ chaps, Doherty’s speech was posted here a few days ago, give it a rerun.

  • Greenflag

    Taoiseach Cowan gave an account yesterday to the ‘real goverment ‘ of ROI . His explanatory article was published in the Wall St Journal yesterday. They (WSJ) did’nt mention Pearse Doherty . They don’t like that kind of talk -it doesn’t sound like free speech .

    But the good news today for Irish taxpayers is that AIB are preparing to pay out 40 million euro in bonuses to their top performing executives – you remember who they were of course -the lads who dragged the country by their overweening greed to the edge of perdition . And their reward is more dosh ?

    An incentive presumably to finish the destruction job they excel in- next time ?

    Anything Wall St can do – AIB can do better 🙁

  • another

    A job well done;

    http://url.ie/8fki

  • Alias

    Another, Sean Dunne, despite what that article wrongly claims, isn’t in NAMA. 326.5m is owed on his Ballsbridge site to Ulster Bank (a non-participating bank). He may yet end up in NAMA for his other debts (he is opposing it) but the Daily Mail could end up talking to his lawyers there.