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Tax & PRSI

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  • 18-01-2002 2:56am
    #1
    Victor
    Registered Users Posts: 78,404 ✭✭✭✭


    This came to me while reading the Kevin myers topic.

    What thinks ye of our 'wonderful' tax system. Which is nigh impossible to understand fully and maintains an industry of its own among accountants, civil servants (Revenue Commissioners, Department of Social, Community and Family Affairs, Department of Finance) and printers.

    What would you do to the system? (other than reduce rates - we can't afford to do that just at the moment).

    1a. Eliminate Employees PRSI (and increase tax to make up the shortfall)?
    1b. Eliminate Employers PRSI (and increase tax to make up the shortfall)?
    2. Rationalise all rates and classes (there are 11 PRSI classes, depending on you employment status, 4 main rates, about 6 bands, some people gain from payment ceilings others don't).
    3. Make unearned income (Capital Gains Tax 20%) the same rate as earned income (Income Tax 20-42%).
    4. Put income tax (mostly annual) and PRSI (mostly-pay period) on similar time basis.
    5. Insist on calendar accounts for all taxes. As a self employed person I don't have to pay all the income tax on May 2001 income until January 2003.

    While there are idealogical reasons for keeping separate tax and PRSI systems, practical considerations (excessive cost, errors, maintainence of records) over-ride this.

    This is the information on the PRSI classes.
    http://216.12.141.12/welfare/77-384959.xml#24


Comments

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    #2
    Sand
    Registered Users Posts: 12,580 ✭✭✭✭Sand


    Hmm if you wanted a tax system which wasnt written in greek you could go for a flat tax system. That would be the simplest (massive savings, and lawyers get screwed over which would be nice for a change:) ), and the fairest imo (fair is subjective however so im sure the left has a whole other opinion on what fair is:) )


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    #3
    Boston
    Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    the tax system is quiet easy to understand, and over the past 2 years has been getting allot more simpliar, and in the near future you will be able to do it over the net, completely, (its meant ot be up now buts its not)


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    #4
    Victor
    Registered Users Posts: 78,404 ✭✭✭✭Victor


    I'm cautious about a flat rate tax system. Perhaps flat rate with tax credits? Or two rate with tax credits? Not four rate with variable credits (current).


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    #5
    shotamoose
    Registered Users Posts: 1,411 ✭✭✭shotamoose


    some interesting point on the flat tax here:
    http://www.straightdope.com/classics/a5_139.html


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