tag:blogger.com,1999:blog-2826531655042170344.post7824509188779696419..comments2024-03-26T11:29:52.986+00:00Comments on Economic Incentives: Taxing with the best of themSeamushttp://www.blogger.com/profile/15679299530222667673noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2826531655042170344.post-3335925787934594972012-12-22T17:19:33.087+00:002012-12-22T17:19:33.087+00:00Tax and USC goes to fund social assistance. They s...Tax and USC goes to fund social assistance. They should be merged, in my opinion.Stephen McNenahttp://www.nuigalway.ienoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-91044782081931120562012-12-21T16:38:04.706+00:002012-12-21T16:38:04.706+00:00@Seamus
Well, you could argue that it goes towards...@Seamus<br />Well, you could argue that it goes towards funding the means tested aspect of social benefits and the universal aspect, for example child benefit.<br /><br />I agree, though, that it would be useful if some of this was made clear. I've been arguing for a while too that PRSI rates are too low for the level of benefit they provide.<br /><br />Probably the more important aspect of Ireland as a low tax economy for employers is that the employee sees more of their total remuneration so the overall package costs stay low, despite individually high salaries. Changing this, though, would be difficult.yoganmahewnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-33457124286891691282012-12-21T14:50:44.397+00:002012-12-21T14:50:44.397+00:00@yoganmahew,
USC is most definitely counted as In...@yoganmahew,<br /><br />USC is most definitely counted as Income Tax. There is no benefit entitlements from paying USC.<br /><br />There are some estimates of the breakdown of Income Tax <a href="http://economic-incentives.blogspot.ie/2012/11/collecting-more-income-tax.html" rel="nofollow">here</a>. USC receipts were around €3.1 billion in 2011 and would be closer to €4 billion in 2012.<br /><br />If USC was classified as a social insurance contribution it would change the picture that would only be sensible if the USC actually was a social insurance contribution. Self-employed people get no benefit entitlements from paying USC.Seamushttps://www.blogger.com/profile/15679299530222667673noreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-15711146710081207512012-12-21T14:35:50.655+00:002012-12-21T14:35:50.655+00:00I presume you are classifying USC as income tax as...I presume you are classifying USC as income tax as it is not broken out from income tax receipts? (As far as I know, anyway).<br /><br />Are there any estimates for USC income and would it change the picture (particularly for the self-employed) if it was calculated as a social insurance contribution?<br /><br />Thank you and happy Christmas!yoganmahewnoreply@blogger.com