How much tax are you [B]reallY[/B] paying?

SafeSurfer

The recent debate about how many people would be better off on the dole rather than working got me thinking. My household, 2 people working spend on average 10,000 on petrol/diesel/home heating oil per year.

The tax/excise on each lite of petrol is around 60% and on diesel is 50%.

So from take home pay we are paying an unavoidable 5,000 plus in extra tax.

Add in a standard rate of VAT of 23% on most purchases, hidden charges here, stealth taxes there.

So, roughly how much of your "after tax" income is eaten up by further taxes?

My reckoning is around an additional 30%, as basics such as food are VAT exempt.

Geuze

Total tax in Ireland is about 30% of national income in 2010 (GDP).

See here:

http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-12-002/EN/KS-SF-12-002-EN.PDF

If we use GNP instead, it's about 36% of national income.

Of course, some people pay more, some less.

Geuze

Total Govt revenue data was published by Eurostat today.

See below:

http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-12-027/EN/KS-SF-12-027-EN.PDF

Ireland's total Govt revenue seems to be about 36% of GDP, well below the EA and EU averages.

Note: tax revenue is not the same as total Govt revenue.

Geuze

I spend 1,000 pa approx on diesel.

I spend 800 pa approx on heating oil, 4-bed det house.

Victor

So how much are you giving the oil and motor industries?

Where To

If I went through any more dieselfuel they'd let me join that OPEC

Potatoeman

It depends how much money you make and what benefits you are entitled to. A single person that doesn’t qualify for rent allowance (only around 25% of people on the dole are receiving it) will be better of working on even minimum wage but a single mother with a few kids wont (crèche fees etc).

Eathrin

The real question is, just how bold do you want that title to be?

christmas2012

In fairness i see what youre saying about the single mother and the kids not benefiting but to be stuck in a welfare trap is awfully limiting there should be a better system.

I think single people even would find it a shock on min wage when there off the full rate of the dole with all entitlements and medical card and fuel allowance..

As you have to pay for not just fuel ,car tax ,road tax, theres health insurance for when you get sick ,doctors fees dentist fees and a whole load of other stuff you wouldnt be entitled to rent allowance etc or other benefits..

Victor

christmas2012 wrote: »

I think single people even would find it a shock on min wage when there off the full rate of the dole with all entitlements and medical card and fuel allowance..

As you have to pay for not just fuel ,car tax ,road tax, theres health insurance for when you get sick ,doctors fees dentist fees and a whole load of other stuff you wouldnt be entitled to rent allowance etc or other benefits..

Are you saying that unemployed people get free fuel ,car tax ,road tax, etc?

Neil3030

This is a question I've often wondered myself - is someone better on the Dole or working for minimum wage.

Assume a single childless person works 40 hours per week at the m/w of €8.65; according to this calulator, they'd come home with €329 after taxes and charges (assuming no pension contributions etc.).

That's €1426 per month.

Jobseeker's benefit / the full Jobseeker's allowance is €188 per week, which comes out at €752 per month.

So assuming you get no rent allowance, you're €674 better off per month taking the job, but on the dole you'd have a medical card.

So you'd need to be seeing the doctor more than 10 times per month for the dole to be a better option for you.