NEWS 21
Public servants are the biggest contributors to the state’s finances, writes Dave Hughes, calling for a fairer distribution of the tax burden
Public servants paying the most tax
contributed by workers and the self-employed through income tax. Significantly income tax is now consistently the highest tax contributor having toppled VAT from the top spot since the beginning of the recession a decade ago. There is nothing to suggest this will change as a result of the upcoming budget or that the patriot PAYE worker will revolt. Public service workers pay more taxes than all other sectors. When health and social work activities, educa- tion, public administration and defence, and administra- tion and support services are added together, over €5bn of the €17.5bn combined
income tax and USC was taken directly from public sector wages. In addition, the public service pension levy yielded a further half billion to the state. The self-employed paid €2,302bn including Schedule D (unearned) income and USC contributions. The combined PAYE and income tax collected from agriculture, forestry and fishing was €304 million. PAYE workers are the silent but reliable taxpayer whose contribution is never acknowl- edged. Perhaps their only vent for paying the high price is support for campaigns against further so called ‘stealth taxes’, such as property or service charge taxes.
Despite the publicity given to the growth of corporation tax in 2018, it remained as only third in the contributions to the state tax intake and has never reached the level paid through VAT or income tax. PAYE workers contribute the highest to the state cof- fers. Public service workers, although numbering less than 20% of the workforce, paid almost 30% of the combined income tax and USC charges. Gross Exchequer returns in 2018 amounted to over €77 billion. Income tax made up €23,469,722 of that, while VAT contributed €19,340,210. Corporation tax collected amounted to €11,442,132 which is just under 50% of that
Yet a fairer distribution of the tax burden requires that those who don’t pay income tax are required to make their contribution through indirect taxation or taxes related to wealth, property or services delivered. So next time you hear yet another group claiming to have rescued Ireland from the worst recession ever experienced, remember you have paid more than your share and very likely much more than that paid by the voice you’re hearing. Table 1 shows a breakdown of Revenue’s net receipts by sector (source: Revenue Annual Report 2018) . Dave Hughes is deputy general secretary of the INMO
Table 1.Net receipts by sector (€million) for tax year 2018
Overall
Type of tax:
VAT internal³
PAYE 1
Income tax 2
Corporation tax Capital gains tax
A) Agriculture, forestry & fishing
-127.59 336.03 498.55 218.71 5,613.67 257.20 661.21 625.61 381.23 721.87 558.00 342.63 102.34 1,868.82
98.03
206.22
76.47
82.95
336 761
B/D/E) Mining & Utilities C) Manufacturing
259.89
15.31 48.69
149.08
0.77 3.39
1,988.28
3,219.00
5,758 1,621 8,611 1,160 1,159 4,498 4,878 1,671 4,532 2,243 1,965 1,319 1,816 1,365
F) Construction
748.66
372.16 102.75
262.65 768.05 282.99 118.61
19.13 31.55
G) Wholesale & retail trade; repair of motor vehicles & motorcycles
2,095.09
H) Transportation & Storage
566.91 315.58
49.37 53.00 22.85 62.69
3.53
I) Accommodation & food services J) Information & communication K) Financial & insurance activities
10.72 17.73 73.67
1,736.92 2,255.48
2,094.50 2,105.40
L) Real estate activities
172.13
398.16 529.44
129.47 341.14 772.05
249.67
M) Professional,scientific & technical activities N) Administrative & support service activities
1,698.06
94.92
880.00
27.33 12.16 19.32
5.32 0.77 4.70
O) Public administration & defence
1,609.33 1,185.03 1,552.54 510.07 17,672
-0.06 7.35 -7.34 67.64
P) Education
Q) Human health & social work activities
66.09
184.18 198.37 2,302
20.30
R/S/T/U) Other activities and sectors
211.64 12,336
376.88
All sectors total
10,387
996
43,693
¹ Includes USC and income levy charged on PAYE income; ² Includes USC and income levy charge on Schedule D income; ³ Includes appropriate VAT MOSS
In difficult times the INMO will be your only partner and representative. If you are not a fully paid up member, you cannot avail of the Organisation’s services and support in such critical areas as: safe practice, fitness to practise referrals, pay and conditions of employment, other workplace issues and continued professional development. Please advise the INMO directly if you have changed employer or work location Contact the membership office with any updates through the main INMO switchboard at Tel: 01 6640600 or email: membership@inmo.ie Is your INMO membership up to date?
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