With more people working this year compared to last, income tax estimates are due to rise by 5.3% year on year. For every euro the Government will have to spend this year, workers contribute 38 cent through their income tax.
The second largest element of revenue is VAT with the Government pulling in over €12 billion in VAT. This was up 6.1% in 2016 compared to 2015. As consumer confidence and spending power increasing (for some), these are signs that are starting to show up in VAT receipt windfall for the exchequer.
The third element of revenue is corporation tax and with the Government's recent appeal on the Apple decision, it is extremely unlikely this will be changed.
Who actually pays income tax?
We all like to complain about how much we have to pay in taxes, but we all pay an amount unique to our earnings. Those who earn more, pay more. Income earners higher than €80,000 pay more than half of the overall income tax. A further one-third of income tax is paid by those earning between €50,000 and €80,000. The remaining 1.5 million income earners (75% of workforce) pay the remaining 13-15% of income tax.
Should Corporations pay more?
With €6.6 billion being brought in by corporation tax, should Ireland increase the rate or does it create jobs which in turn create income tax? You can have your stay by taking part in our People's Budget - released next week.
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