People on lower salaries will be worst affected by an increase in the carbon tax, according to Social Justice Ireland. A new report recommends raising the tax from €20 to €80 per tonne by 2030. This will, in turn, have knock-on effects on the cost of fuel and the likes of coal and gas. "There are hundreds of thousands of people who are struggling at the margin of survival," said Dr Seán Healy, CEO of Social Justice Ireland. "Over 15% of the population has an income below the poverty line. "If (an increased) carbon tax comes in, these are the people that are most vulnerable. "The proportion of their income that will pay towards carbon tax is much higher than the proportion that would be paid by wealthy people," he concluded. … [Read more...] about Carbon tax to hit lowest earners hardest, says Social Justice Ireland
Clampdown on pensions tax relief hits high earners
Thousands of homeowners are missing out on lucrative housing-related tax reliefs, comments Eileen Devereux, commercial director with Taxback.com. Taxback.com’s latest Taxpayer Sentiment Survey has found that 65% of people do not know what the Home Renovation Incentive (HRI) is, 60% don’t know what the Rent a Room Scheme is, while 57% don’t know about the Help to Buy Scheme. “We believe there are many more people who could be availing of these tax reliefs. Some people could be missing out on the reliefs available to them, due to a lack of awareness or understanding,” said Eileen Devereux. The figures for those availing of tax reliefs suggests there may be thousands of others failing to apply. Just 7,350 people took up Rent a Room relief in 2016, with countless others missing out on earning up to €14,000 tax-free from renting out a room in their home. In 2018, some 28,882 works were carried out under the HRI, but how many others built an extension, a … [Read more...] about Homeowners missing out on lucrative tax reliefs
This means that any move to reduce the tax reliefs will hit Government workers hard, prompting them to seek higher pay. The paper, by leading pensions actuaries Tony Gilhawley and Roma Burke, found that the State's contribution to the pension of an average public servant recruited before 2013 is 29pc of their salary, rising to 53pc for gardaí. Private sector workers with a defined contribution pension have an average employer contribution of just 7pc, the paper states, quoting Department of Public Expenditure and Reform figures. "If you want to retire on a good secure pension don't work in the private sector. Join the public service," the actuaries state. The paper also found that the cost of paying pensions to retired public servants will have jumped by €1bn next year when compared with 2016's figures. Referring to what they call 'pensions apartheid', Mr Gilhawley and Ms Burke state: "Clearly we have a pensions system which discriminates by whether you work in the public … [Read more...] about Public sector ‘benefits the most’ from tax reliefs on pensions
The enterprise investment scheme (EIS) celebrates its silver jubilee this year. Announced by the then chancellor Ken Clarke in the Autumn Budget in 1993, the scheme was launched at the beginning of 1994. The benefits of the EIS have remained generous – in fact, they’ve become more generous. Until April 2011, the up-front tax relief was 20 per cent. Today it is 30 per cent. Those aren’t the only benefits: your investments are free of capital gains tax, you get loss relief, and your pot becomes inheritance tax free after two years. By investing via the EIS, you also have the option of deferring capital gains on assets outside of the wrap. Compare that with what has happened towards pensions in recent years – just a decade ago you could put £255,000 into your pension each year. Now it is £40,000, and only £10,000 for the highest earners. Since 1994, 27,905 companies have received investment of over £18bn via the EIS. It is estimated that, in the … [Read more...] about The EIS has cost the government £3bn in tax relief, so why has it become more generous?
0 Have your say Plans to widen the “tax gap” between middle-earners in Scotland and the rest of the UK will scrape through at Holyrood today despite the Greens confirming they won’t support the SNP government. Greens co-leader Patrick Harvie says the changes in taxation don’t go far enough and wants Scots higher earners to pay more to help offset the chronic budget cuts facing local councils.The income tax changes for 2019/20 will be passed with the minority SNP administration still having the numbers to out-vote the other opposition parties if the Greens abstain.It will mean Scots high and middle earners pay hundreds of pounds more in tax than those south of the border. However, a majority of Scots workers (55 per cent) will pay marginally less.“Green pressure in recent years resulted in the new, fairer system of rates and bands which means lower earners get a break and higher earner pay a more appropriate share,” Mr Harvie … [Read more...] about MSPs to back tax hikes for high earners in Scotland