Sunday, January 9, 2011

09/01/2011: Exchequer returns - Part 6

This is the sixth post on Exchequer returns for 2010 (previous parts are here: part 1, part 2, part 3, part 4 and part 5).

This time around, I am going to take a closer look at the incidence of taxation across various tax heads and agents of economy.

During the year, I have been consistently highlighting the problem of rising burden of taxation for the households - the core agency of any economy. In particular, the rising burden of income taxation. Here are two charts - one comparing 2007-2010 at H1 end and another comparing same years at year end:

Table below summarizes:
Interestingly, Minister Lenihan in his address relating to the release of December returns has gone out of his way to highlight two things:
  • Increase in corporate tax returns, and
  • Decrease in income tax returns
Minister Lenihan would be better served if he were to look at the 2007-2010 comparatives, which clearly show that his Government's policies have shifted massive new burden for carrying public expenditure onto the shoulders of ever-shrinking (remember latest Live Register results?) pool of working households. At the same time, corporate tax contributions to overall tax receipts have declined on 2007 (albeit insignificantly).

Let's highlight this for him, taking into account that both businesses and households are paying more than just corporate and income taxes:

No comment needed!

2 comments:

  1. Interesting analysis expecially the charting of decreasing tax receipts as tax rates increase.

    Here in the states our back is not up against the wall (yet). In 2011 we will enjoy new personal income tax cuts from our national pension plan tax, which doesn't go into a fund anyway but is used for general expenditures.

    ReplyDelete
  2. Yeah.
    It is just a matter of time when the whole thing will collapse. The interesting thing is that it will be the best thing can happend to western world economies.default, restructure, start over. Funny that we will not learn a thing. This time it will take two generation to recover from debt armagedon.Someone should stop teaching us Keynesian in third level education!I think that those idiots in goverment have proven that it doesn't work!No more! Bring back gold standards and living within means!

    ReplyDelete