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Ireland: Poorer people in Ireland ‘pay out more of their income in tax’

Friday, 29 August 2014   (0 Comments)
Posted by: Author: Eoin Burke-Kennedy
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Author: Eoin Burke-Kennedy (The Irish Times)

Report suggests poorer households are disproportionately hit by indirect taxes, like VAT

Poorer people in Ireland pay out a greater share of their income in tax than their richer counterparts, according to new research.

The finding, contained in a report by the Nevin Economic Research Institute, runs counters to the notion that Ireland’s tax code is progressive, in other words, one in which the tax rate rises as income increases.

The institute’s research, which is based on data from Central Statistics Office’s most recent household budget survey, found Irish households pay 24 per cent of their income in taxes, both direct and indirect.

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