General Taxation

oneshot2shots

I'm just wondering how much the government takes from a paycheck.

Say a new graduate comes out of college earning 32000(optimistic i know:).

How much will he have robbed from him?

Is there a poverty line like in england which is non taxable? How much does PAYE, USC, PRSI, 21% income tax etc reduce the actual amount to?

Tried looking at wikipedia and revenue.ie but couldn't get a clear idea of the actual breakdown.

AlmightyCushion

Google PAYE calculator.

relax carry on

oneshot2shots wrote: »

I'm just wondering how much the government takes from a paycheck.

Say a new graduate comes out of college earning 32000(optimistic i know:).

How much will he have robbed from him?

Is there a poverty line like in england which is non taxable? How much does PAYE, USC, PRSI, 21% income tax etc reduce the actual amount to?

Tried looking at wikipedia and revenue.ie but couldn't get a clear idea of the actual breakdown.

You think taxation is a form of theft? Good luck finding a fully functioning society with no element of taxation or social insurance contributions somewhere in the world to satisfy your needs.

However if you are going to reside and work in Ireland you may wish to read a few of the links below.
Roughly a single person working in a PAYE job can earn 16500 euro in a tax year before paying PAYE. Once above 16500 the 20% rate kicks in until 32800. Then its 41%.
Usc and prsi is explained in the links below.

http://www.revenue.ie/en/personal/paye-guide-employees.html

http://www.revenue.ie/en/tax/usc/index.html

http://www.welfare.ie/en/Pages/1896_Pay-Related-Social-Insurance.aspx

Geuze

Income tax kicks in at 16,500.

That's way ahead of other countries.

Geuze

oneshot2shots wrote: »

I'm just wondering how much the government takes from a paycheck.

Say a new graduate comes out of college earning 32000(optimistic i know:)

32,000 * 20% = 6400 gross tax due

Less the usual tax credits:

Personal tax credit = 1650
PAYE tax credit = 1650

Tax due = 3100 or 9.7% of the wage

Marcusm

oneshot2shots wrote: »

I'm just wondering how much the government takes from a paycheck.

Say a new graduate comes out of college earning 32000(optimistic i know:).

How much will he have robbed from him?

Is there a poverty line like in england which is non taxable? How much does PAYE, USC, PRSI, 21% income tax etc reduce the actual amount to?

Tried looking at wikipedia and revenue.ie but couldn't get a clear idea of the actual breakdown.

How much of the proceeds of this crime of robbery was used in the past to finance your education?

oneshot2shots

Well personally I wouldn't describe an economy 140 billion in debt with 13% unemployment rate(despite massive emmigration) and lots of natural resources fully functional by any means. And paying secondary school teachers( with taxpayer money) ridiculous amounts of money with no special skills (IMO) as well as bailing out banks is not a responsible use of money. Would have no problem paying if I thought it would actually be used for the common good.

Anyway that's neither here nor there, thanks for the links and advice. Misus USC and PRSI it works out aound 26,500, I thought it would be more tbh. Didn't know that there is no tax until 16000. I was getting confused over the 20% until 32k minus tax credits vs 20% after 16k, until I realized they both result in the same amount anyway. I'm assuming you get taxed from the 16000 and then claim back the tax credits at the end of the year?? I still think that taking 50% ( when inc PRSI and USC @ 4% each) of every euro above 32000 is a bit draconian - There isin't any real incentive to earn more.

Geuze

oneshot2shots wrote: »

Anyway that's neither here nor there, thanks for the links and advice. Misus USC and PRSI it works out aound 26,500, I thought it would be more tbh. Didn't know that there is no tax until 16000. I was getting confused over the 20% until 32k minus tax credits vs 20% after 16k, until I realized they both result in the same amount anyway. I'm assuming you get taxed from the 16000 and then claim back the tax credits at the end of the year?? I still think that taking 50% ( when inc PRSI and USC @ 4% each) of every euro above 32000 is a bit draconian - There isin't any real incentive to earn more.

Yes, the net result of 20% tax up to 32,800 and deducting the tax credits is that you don't pay tax until 16,500.

Think about it - a tax credit of 1 euro is put against 1 euro tax. so tax credits of 3300 can be put against up to 3,300 tax. Now the tax rate is 20%, which is 1/5 as a fraction.

So 3,300 is 1/5 of what?

Answer is 16,500.

Example

Earn 16,500, pay 20% tax = 3,300, less your tax credits = NIL tax due.

Earn 16,501, all tax credits used up, you owe 20% on the extra euro.

Geuze

oneshot2shots wrote: »

I'm assuming you get taxed from the 16000 and then claim back the tax credits at the end of the year?? .

No.

The Revenue tell your employer what tax credits you are entitled to. They appear on your payslip.

If correct, then all ok, no question of claiming back anything.

Geuze

oneshot2shots wrote: »

I still think that taking 50% ( when inc PRSI and USC @ 4% each) of every euro above 32000 is a bit draconian - There isin't any real incentive to earn more.

Yes, it's a killer, and the key problem with the Irish tax system.

The top marginal rate kicks in at too low incomes.

52% is ok, for incomes over 100k.

52% on over 32,800 is pure crazy.