Are You Single?

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OECD report Taxing Wages 2018

This morning.

The OECD has published a report called Taxing Wages 2018.

Fiona Reddan, in The Irish Times, reports:

Single workers with no children are bearing the brunt of Ireland’s personal tax regime, a new study shows. And Ireland’s experience reflects the position across the 35 OECD states where households with children face a lower personal tax burden than those without.

Taxing Wages 2018 measures the so-called tax wedge – the difference between a person’s take home pay and what it costs their employer to employ them.

…The new study shows that one-income families on the average wage (€ 36,358) and with children give up just 1.2 per cent of their income on tax.

…According to the survey, across the OECD, the average single worker paid just over one-quarter of their gross wages in income taxes and social security contributions, a ratio that has remained relatively stable over the last two decades, the OECD said.

Single workers bear the brunt in Ireland’s personal tax system (Fiona Reddan, The Irish Times)

Read the OECD report in full here

78 thoughts on “Are You Single?

      1. mildred st. meadowlark

        Well I’m sure my kids will enjoy funding your care when you’re old. It works both ways.

        1. AssPants

          Mildred, I will fund my own care.

          Have you noticed, no one gets anthing for free from the state. That wonderful “Fair Deal” scheme will take my home sell it and any and all other assets I may have, all with the best of intentions to put me into a “safe” caring environment.

          In the meantime, we work all our adult life pay taxes on demand and we still have to provide for ourselves.

          No Mildred, not your children or anybody elses will pay our senior years. You are doing paying for yourself today and you will pay for it long after you retire.

          1. Cian

            The DSP paid over €7,000,000,000 on pensions in 2016.

            But apart from that €7 billion – you just might have a point.

          2. mildred st. meadowlark

            At the end of the day, it all goes into the one pot and is divvied up according to what will gain the most votes for the current government.

            The taxes I’ve been paying for the past 15 odd years fund my daughter’s free ECCE place, they fund my grandmother’s hospital care, they fund the salaries of those arseholes in Leinster house. We all (most of us) pay our bit and have very little say as to who it will benefit or what it pays for. That’s how it works.

          3. AssPants

            Your not wrong Mildred.

            I think the difficulty for most people is the volume of money that is wasted; poorly and mostly never thought out spending is what, in my opinion most people are frustrated with.

            When a salary of one individual at €51k contributes €13,940; (as per Cian below), being circa 27% of ones salary; plus a further €5,483 from employers PRSI; it is these numbers that people really start to loose the value of their contributions. A cumulative annual contribution from one employee of €19,423. Also, people are fundamentally aware they will never enjoy anything like the monetary value of lifetime tax remittances through senior life state benefits.

            Another point to consider is; the government never really; absolute and truthfully discus’s the current available cash flow within our national finances. I genuinely believe that the available cash on hand at any given moment is significantly stronger to what was on hand 10 years ago.

            There in lies the problem. The state have over the last 10 years imposed a number of new taxes; employed very aggressive tax collection procedures at Revenue and continue to do so. Thus cash flow is ever stronger, but never seems to come back to working middle Ireland.

          4. scottser

            i intend to spend my ‘gap year’ before i draw my pension as a raffles-type jewel thief. i have the moustache planned and everything.

          5. Cian

            Alors. Dunno.
            But back-of-envelope calculations. There are ~500,000 people 65+. Non contributory pension is up to 232 per week. Let’s round down to ~ 10.000 per year.
            This is works out at 5 billion for non contributory pensions.

  1. LennyZero

    What percentage of families is this?

    The new study shows that one-income families on the average wage (€ 36,358) and with children give up just 1.2 per cent of their income on tax

  2. Declan

    Just off the top of my head the single income family would be able to claim the standard reduction of €1,650 twice, leading to a lower actual rate of tax.

    Kids are also expensive or so I’m lead to believe…. so let them have it

          1. anne

            Was busy there yesterday..soz. You’re right..kinda. Both single & married are entitled to a PAYE credit if they work, of 1650. There’s the married credit of 3300 too which u can split or one person can take. You can’t transfer the paye credit.

            I’ll get u the links. That report was based on all sorts of social welfare entitlements too btw.

    1. anne

      This is the bit I was saying no to.

      https://www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/marriage-and-civil-partnerships/joint-assessment.aspx

      Allocating tax credits, reliefs and rate bands

      Joint assessment allows you to allocate (transfer between you) most of your tax credits, reliefs and rate band with your spouse or civil partner. The Tax Rates, Bands and Reliefs that apply to you depends on if one or both of you have an income.

      You cannot transfer:

      *the Employee Tax Credit
      *employment expenses
      *the increase in the standard rate band.

      Basically don’t get married, it’s not worth the few grand. :-)

  3. filly buster

    im 39, im on 51k per annum and i live on my own, rent is a bit above €1000, and I live from pay packet to pay packet. I very rarely get clothes or any flash extras. My money goes on rent, elec bill, TV/Internet, bins, food. I have about 5 pints a week. I sold the car and couldnt dream of affording to run one.

    My point is that on my pay, in any other EU city, I’d probably own my house & car, and be able to go out to dinner etc. and go on holidays.

    .. and im on a good salary .. so how the fupp do people on a basic salary live here? Our gov. treats us like cattle, to harness and drain what they can from us. there is no will to make it a great place for us to live and thrive.

    1. The Ghost of Starina

      That sounds very similar to my situation. Doing my absolute best to save but it’s tough, and holidays have to be short and cheap or i’ll wipe out my savings and have to start all over again. Hate that feeling.

    2. Truthful Ulsterman

      That doesn’t add up filly buster because you have 3 grand a month after tax and 2 grand a month after paying your rent. You should be able to save about 8000 a year and live nicely.

      1. filly buster

        you’d think so, Ulster. But with Bills, loan repayments etc., it works out at about €200 a week to spend on myself including food. So if something comes up, and often does, like doctor bills, medicine, a wedding, nephews birthday, anything like that, it eats into that 200 pw, sometimes wiping it out.

          1. filly buster

            lol. remnants of joan burton saying if you’ve an iphone you should downgrade to a nokia 3210 and spend the savings on water bills.

          1. anne

            Jesus.. why dont you ask him to post his bank account statements.

            It’s a tidy sum living in Ireland.

          2. Cian

            Filly started it by saying 2000 per month after rent was barely enough to live. I, and others, are surprised at this. We then find there are loans too.

            And 6’2″ (or 74 inches).

    3. Hank

      You’ve described my situation exactly apart from I haven’t had to sell my car.
      It’s fupped up..

    4. Barry the Hatchet

      I have to say, I find that a bit baffling, filly. Your monthly net income is €3k. You’re spending just over a third of that on rent (not unusual). What in god’s name are you spending the rest of it on that you’re not able to go out to dinner or go on holiday, and you’re living paycheque to paycheque?

      1. Cian

        I spend €500 on drink, €500 on hard-drugs, €500 on the horses… and I simply waste the other €500.

      2. filly buster

        Barry. after rent, load repayments and bills, i have about 200 a week for myself of which food has to come out of too. A doctor visit and subsequential medication can blow that out of whack altogether. Throw in weddings, birthdays, and other things that pop up and you can find yourself counting pennies pretty quick.

    5. Andy

      That’s really the problem with the country.

      You’ve done well for yourself and nothing to show for it.

      I guess you’ve “contributed” to a better society………or however SJW want to dress it up

  4. Sheik Yahbouti

    “When I was single I had a plaid shawl,
    Now that I’m married I’ve nottin ‘ at all,
    Oh and still I love him, I’ll forgive him,
    I’ll go with him wherever he goes”. ;-D

          1. mildred st. meadowlark

            #pullingacian has grown beyond you now.

            It’s an entity all of its own now, with it’s own thought processes and sentience and a post code too.

          2. Andyourpointiswhatexactly?

            I wish. I always snigger when anything has 69 in it. It’s the Viz in me. UP me. Fnar.

          3. Andyourpointiswhatexactly?

            Hang on, you go from giving me sever big kisses (XXX XXXX) to saying I’m racist within one post?
            I’m disappointed in you, Key-Key.

    1. Papi

      Side point, but is bollocks allowed now? Cos I love that word. GO WAY, YOU UTTER BOLLOCKS. I say.

      1. Janet, I ate my Avatar

        Milly got away with an f bomb the other day
        I’m not saying where cause THEY havenae seen it

  5. Rob_G

    Any attempts to widen the revenue base (water charges, property tax) have been strongly resisted, so no surprise that the PAYE worker is left to carry the can, as ever.

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