Luke Field tweetz:

Seems the #RENUAFlatTax calculator has disappeared after a few interesting results appeared…

CONTEXT: Renua plan would leave minimum-wage earners worse off, Creighton admits (Irish Examiner)

16 thoughts on “Oops

  1. starina

    why on earth would they even propose something like that when it’s obvious that’s the first thing that would be checked?! it feels like renua are just throwing ideas out and seeing what sticks

  2. Punches Pilot

    So as usual something a politician said hasn’t been properly thought-through, is a total brain fart to garner votes/attention and really has no long term sustainability to it what so ever. “What aul shiote will we roll out that’s different from everyone else lads? If they bring this back in any sort of revised form it’ll actually prove the point even more. “What ever we need to say” Time to banish this this bunch of FG reject upstarts before they gain traction. Just a new breed of road repairing/church loving/shiote spinning idiots for good. It less egos we need. God where are all the Tony Gregory’s gone!

  3. DubLoony

    So no-one, I mean no-one, not one person in Renua, did any sums at all before putting this out there?

    I despair.

  4. David

    This ‘flat tax’ thing – excuse me ignorance miss, but if it’s such a great idea, why isn’t it used everywhere?

  5. Owen C

    This is weird. In a progressive tax system that currently has a lot of people at the bottom of the pay-scale paying effective rates 0%, and then gradually rising up to ~40%, of course a flat tax of 23% would leave some people worse off. How could Renua not realise this? You get around it by having a basic tax free allowance of say 5k or whatever (in this case, any TFA over 2.5k would leave the earner of €19032 better off), and then a flat tax of 23% above that. It brings in a very mild element of tax progressivity at the bottom of the ladder, which is then fairly quickly eroded once you start to get above 30k or so earnings.

    That said, i don’t see how this sort of income tax rate is even close to revenue neutral given current effective tax rates for higher earners are more like 30-40%. I’d have thought a 30% flat tax + 7.5k TFA would give you a better outcome on this.

    Examples at 5k TFA + 23% flat tax:
    5k = 0% effective tax rate
    7.5k = 7.7%
    10k = 11.5%
    15k = 15.33%
    20k = 17.25%
    25k = 18.4%
    30k = 19.17%
    50k = 20.7%
    75k = 21.5%
    100k = 21.85%

  6. Owen C

    Actually, isnt the issue here that the calculator on the “current tax” doesnt take into account tax credits? At the moment, a single earner earning 20k pays effective tax rate of 10.2% (next year = 7.8%). So at 23% the low paid earner would be horrifically worse off if you dont have a tax free allowance (see my post above)

  7. Bonzor

    I’m disappointed that no journalists have yet asked Lucinda how she’d fare under the 23% flat tax. I wager she’d be quite a few thousand a year better off. Add that to her Senator husband’s increase and I think you’re looking at quite the windfall for the Creighton household if this came in.

    1. Spaghetti Hoop

      If anyone recalls when they were interviewed on Miriam O’Cal’s radio show a year or so ago it is pretty obvious that financial gain was higher in their joint ambitions than serving the public good.

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