{"id":215922,"date":"2025-12-05T00:19:16","date_gmt":"2025-12-05T00:19:16","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/215922\/"},"modified":"2025-12-05T00:19:16","modified_gmt":"2025-12-05T00:19:16","slug":"recent-income-tax-changes-echo-pre-2008-financial-crisis-budgets-central-bank-warns-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/215922\/","title":{"rendered":"Recent income tax changes \u2018echo\u2019 pre-2008 financial crisis budgets, Central Bank warns \u2013 The Irish Times"},"content":{"rendered":"

Changes to the income tax<\/a> code in recent budgets<\/a> \u201cecho the motivations\u201d of budgets in the run-up to the collapse of Ireland\u2019s public finances in the late 2000s, the Central Bank of Ireland<\/a> has warned, and might similarly weaken the \u201crobustness\u201d of income tax receipts. <\/p>\n

However, income taxes in the Republic remain \u201chighly progressive\u201d compared with other countries, and the Irish taxpayer pays a relatively high average rate compared with other OECD<\/a> (Organisation for Economic Co-operation and Development) countries.<\/p>\n

Published on Thursday, the insights are contained in a new research article, written by economist Professor David Cronin, an adviser in the Central Bank\u2019s economic analysis division. <\/p>\n

According to the research, there has been little change in the average tax rates for single-person taxpayers at both ends of a \u20ac10,000 to \u20ac300,000 annual earnings range since 2013. <\/p>\n

Most average tax rates have changed by less than one percentage point in that time, which covers the tail-end of the post-2008 recession as well as the Irish economy\u2019s subsequent recovery.<\/p>\n

The Central Bank found that \u201cin the round\u201d Irish budgetary policy since the 2008 financial crisis has not undermined income tax receipts, a sharp fall in which was a \u201ccontributing factor to the deterioration in the Irish public finances\u201d during the late 2000s. <\/p>\n

\"\"Will the Government\u2019s new plan speed up the delivery of vital infrastructure projects? <\/p>\n

\u201cIn particular, average tax rates at higher incomes, from where a large share of income tax is collected, have seen little change,\u201d it said. <\/p>\n

Income tax here is also \u201chighly progressive\u201d, the Central Bank said, and is higher relative to gross wage earnings than the OECD average and that of its 22 European Union members, indicating \u201cthat Irish taxpayers pay a relatively high average rate of income tax\u201d. <\/p>\n

However, the report concludes that recent changes to income taxes aimed at reducing the tax burden on lower and middle-income earners \u201cseem to echo the motivations of budgets from 1999 to 2007\u2033. <\/p>\n

The Central Bank warned that \u201cpast experience\u201d in recent Irish economic history \u201chighlights the risks of discretionary reductions to the tax base and effective income tax rates in general, or to readjusting the tax code excessively across the income distribution in favour of the lower paid\u201d. <\/p>\n

Actions such as these can \u201cweaken the robustness of income tax revenues,\u201d it said, adding that tax policy generally needs to take account of the \u201cstrong growth\u201d in government expenditure in recent years. <\/p>\n","protected":false},"excerpt":{"rendered":"Changes to the income tax code in recent budgets \u201cecho the motivations\u201d of budgets in the run-up to…\n","protected":false},"author":2,"featured_media":215923,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[10471,79,22767,179,18,19,5233,17,11800,4520],"class_list":{"0":"post-215922","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-budget","9":"tag-business","10":"tag-central-bank-of-ireland","11":"tag-economy","12":"tag-eire","13":"tag-ie","14":"tag-income-tax","15":"tag-ireland","16":"tag-organisation-for-economic-co-operation-and-development-oecd","17":"tag-tax"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115664097647600374","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/215922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=215922"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/215922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/215923"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=215922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=215922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=215922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}