Your SlideShare is downloading. ×
0
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
The Taxpayers' Perspective November 2010
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The Taxpayers' Perspective November 2010

958

Published on

A survey of Irish taxpayers' opinions and preferences in relation to taxes, government spending and future budget balances.

A survey of Irish taxpayers' opinions and preferences in relation to taxes, government spending and future budget balances.

Published in: Business, Career
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
958
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The Taxpayers’ Perspective 1
  • 2. Balancing Act The Irish Government faces a difficult balancing act over the coming years in response to the economic crisis. Irish taxpayers will be expected to bear much of the burden of restoring the public finances to a sustainable trend. This special Amárach Research study explores the current perceptions and preferences of Irish taxpayers as the Government prepares its 2011 Budget and 4-Year Plan. The Taxpayers’ Perspective 2
  • 3. Methodology The findings reported in this study are from the monthly Amárach Research omnibus survey. 1,000 adults over the age of 15 in the Republic of Ireland were interviewed between 11th and 20th October 2010. The quota-controlled sample comprised 850 online interviews and 150 face-to-face interviews, the latter to include groups with low levels of internet usage. The combined results have been weighted to represent the total adult Irish population. The Taxpayers’ Perspective 3
  • 4. 1. Taxing Times whose burden? 2. Could Do Better value for taxes 3. Balancing Act the big debate The Taxpayers’ Perspective 4
  • 5. 1. Taxing Times whose burden? The Taxpayers’ Perspective 5
  • 6. The Coping Classes Although there are different ways of measuring the distribution of taxes (including direct and indirect taxes) it is a little more straightforward for workers in relation to wages and salaries. In our survey, we asked those adults in employment to calculate the share of their earning deducted as taxes and other deductions, and to say how much more they would be willing to pay in light of the impending budget. The Taxpayers’ Perspective 6
  • 7. Pay Up The typical employee in our survey claims that he or she pays just over a quarter of their wage or salary in taxes and other deductions. Men pay a higher percentage than women, and older workers pay a higher percentage than younger workers. Public sector workers, and employees who belong to trade unions also pay higher percentages than others… The Taxpayers’ Perspective 7
  • 8. Taxing Incomes Base = All Employees The Taxpayers’ Perspective 8
  • 9. Pay Up Overall, equal proportions of Irish workers consider the amounts deducted from their salaries to be ‘fair enough’ or ‘too high’ (49% vs 49%), and only one worker in fifty thinks that their income deductions are ‘too low’. Young workers are less likely than other age groups to say that their income deductions are too high. Public sector workers, and trade union members are more like than private sector workers/non-members to consider their wage or salary deductions to be too high… The Taxpayers’ Perspective 9
  • 10. Enough is Enough Base = All Employees The Taxpayers’ Perspective 10
  • 11. Pay Up The average employee would be prepared to pay an extra 3 percentage points in taxes on their incomes in response to the Government’s budget requirements for 2011. Only 16-24 year old employees would be prepared to pay less than they currently have deducted, with the oldest workers prepared to see the biggest increase. There were otherwise few differences in the percentage extra that workers in different sectors etc are willing to see deducted… The Taxpayers’ Perspective 11
  • 12. A Little Extra Base = All Employees The Taxpayers’ Perspective 12
  • 13. 2. Could Do Better value for taxes The Taxpayers’ Perspective 13
  • 14. Enough Already Tax isn’t just about percentages and burdens, it’s also about fairness and value for money. In our survey, we asked all adults – employees and others – whether the felt they were paying a fair enough share of taxes. We also examined their willingness to pay more taxes (not just income taxes on those in employment), and attitudes towards new taxes such as a property tax. The Taxpayers’ Perspective 14
  • 15. Pay Up Turning from the opinions of employees to those of the total adult population, the majority of Irish adults (53%) agree that ‘I pay more than my fair share of taxes right now’. Only one in five disagrees. 35-44 year olds are more likely to agree than other age groups, and men more than women. Public sector workers are significantly more likely to agree they pay more than their fair share than are private sector workers, similarly with trade union members vs non- members… The Taxpayers’ Perspective 15
  • 16. Unfair Shares Base = All Adults The Taxpayers’ Perspective 16
  • 17. Pay Up Over 6 in 10 adults disagree with the view that ‘people like me should be prepared to pay more tax’. There are few significant differences by age or gender, though those in lower socio-economic groups (C2DEs) are more likely to disagree than those in higher groups (ABC1s). As before, public sector workers are significantly different from private sector workers (the former disagree much more than the latter), thought there is a less significant gap between union and non-union members… The Taxpayers’ Perspective 17
  • 18. Solidarity Base = All Adults The Taxpayers’ Perspective 18
  • 19. Pay Up There is a high level of disagreement with the view that ‘on balance we have a fair tax system in Ireland’ – 60% disagree, and only 1 in 4 agree. Those who report already paying the highest percentages of deductions from their incomes (ABC1s, public sector workers, trade union members) are significantly more likely to disagree with this view than others… The Taxpayers’ Perspective 19
  • 20. Getting It Right Base = All Adults The Taxpayers’ Perspective 20
  • 21. Pay Up However, despite perceptions of unfairness and already significant levels of deductions, there is considerable agreement with the view that ‘people on low incomes shouldn’t have to pay income tax’ – 63% agree with this. Women and older adults over 45 are more likely to agree with this view than others, whilst trade union members are more likely to disagree with the viewpoint than non-union members… The Taxpayers’ Perspective 21
  • 22. Less Fortunate Base = All Adults The Taxpayers’ Perspective 22
  • 23. 3. Balancing Act the big debate The Taxpayers’ Perspective 23
  • 24. Don’t Look Down One influence on taxpayers’ perceptions of ‘value for money’ is their sense of how effectively and efficiently government spends their money. In our survey, we asked all adults whether they felt the Irish government is spending their money wisely. Finally, we asked the crucial question: what should the balance be between tax increases and spending cuts in the forthcoming Budget 2011. The Taxpayers’ Perspective 24
  • 25. Pay Up A large majority (64%) disagree with the view that ‘I have a clear understanding of how the government spends taxpayers’ money’. Women and 25-34s are more likely to disagree with this view than other adults, as are non-union members compared to union members. Curiously, public sector workers are as equally ‘unclear’ about government spending of taxpayers’ money as private sector workers… The Taxpayers’ Perspective 25
  • 26. Some Misunderstanding Base = All Adults The Taxpayers’ Perspective 26
  • 27. Pay Up In light of the findings in the previous chart, it isn’t surprising to learn that a huge majority (84%) disagree with the view that ‘I trust the government to spend taxpayers’ money wisely’. Public sector workers and trade union members are even more likely to disagree than their counterparts in the private sector or those employees who not union members… The Taxpayers’ Perspective 27
  • 28. Wise Heads Base = All Adults The Taxpayers’ Perspective 28
  • 29. Pay Up With regard to a property tax, a slim majority (51%) disagree with the idea that ‘the Government should introduce a property tax to fund our local authorities’. Disagreement is higher among 35-44 year olds, private sector workers and trade union members. Agreement (1 in 3 adults overall) is highest among those over 45 (who possibly remember local authority rates from before they were abolished in 1977)… The Taxpayers’ Perspective 29
  • 30. Property Tax Base = All Adults The Taxpayers’ Perspective 30
  • 31. Pay Up In terms of ‘value for money’, two thirds of Irish adults disagree with the statement ‘I feel I get more back from government services than I contribute in taxes’. Women are more likely than men to disagree, as are 35- 44s, ABC1s, and trade union members compared to their peers. Fewer than one in five (17%) agree with the statement, higher among 16-24s and C2DEs… The Taxpayers’ Perspective 31
  • 32. Return on Investment Base = All Adults The Taxpayers’ Perspective 32
  • 33. Pay Up On the crucial issue of how the Government should meet its objects for Budget 2011 and beyond, it is clear that Irish adults think the greater part of the balancing process should come from tax increases than from spending cuts. The average proposed mix of tax increases and spending cuts is 70% for tax increases and 30% for spending cuts. There is remarkable consistency across all demographic groups and employee categories in relation to this self- proposed balance of tax increases and spending cuts… The Taxpayers’ Perspective 33
  • 34. A Little Extra Base = All Adults The Taxpayers’ Perspective 34
  • 35. From Here to There The Taxpayers’ Perspective 35
  • 36. Crossing Over Our findings provide some guidance to those making difficult choices in the weeks and months ahead. Clearly there is a preference for tax increases rather than spending cuts to make up the greater part of the budget balancing act now before us. However, most taxpayers feel they are already contributing enough – so convincing them to do more will require considerable skill. Greater clarity about how the government will prioritise its spending in the years ahead – securing better value in the process – will undoubtedly help. The Taxpayers’ Perspective 36
  • 37. Amárach Research 11 Kingswood Business Centre Citywest Business Campus Dublin 24 T. (01) 410 5200 E: gerard.oneill@amarach.com The Taxpayers’ Perspective W: www.amarach.com B: www.amarach.com/blog 37
  • 38. Appendix: About Amárach We are Ireland’s largest independent market research agency, in business since 1989. 3 rd March 2009 We focus on delivering two key benefits to our Welcome to the latest edition of consumerforesight from Amárach Research. We clients: have set out to make consumerforesight a more interactive and informative research and planning tool for subscribers. Feel free to invite others to register for our free eLetter on our home page. 1. Consumer Foresight – using research to say ‘what next’. Two months gone, ten to go. Like Keith Richards, we‟re all at the stage of “it‟s good to be here – it‟s good to be anywhere”. But it is tough out there. Against a background of industrial unrest (even the Gardaí are protesting!), we shouldn‟t be surprised if 2. Business Insight consumers are on something of a „go slow‟ themselves. – using research to make business decisions. But it won‟t last. It‟s too early for green shoots, but as time goes by people will want to buy: especially those still in secure jobs who are faced with extraordinary bargains in shops, hotels and car showrooms. Irish consumers don‟t really do hair shirts. When we have money we can afford to spend then we‟re usually We provide the full array of market research inclined to spend it: assuming we‟re getting good value and not being ripped off. services including: Don’t forget: for every person in Ireland with a mortgage, loan or ‘maxed out’ credit card there is another person without any debt (at all). W hat are you doing to tap the ‘worried well’ market? - Quantitative: face-to-face, telephone, web - Qualitative: focus groups, in-depths, ethnographic Before you embark on a new brand or Business is about passion: so for that matter is - Field Only: for international & domestic agencies business just remember Seth Godin‟s three things you need read more the economy – check out some wise words on the role of passion in success read more With the world all „a-twitter‟ don‟t forget How not to do food marketing: quite possibly the the future is on the TV read more worst food in the world read more It‟s all down to psychology – an Amárach Optimistic people are healthy and happy – even Register for our free fortnightly eletter presentation on how Irish consumers will lead us to recovery read more when the economy is collapsing around them: what are you doing for optimism? read more consumerforesight at: www.amarach.com Amárach Research will present a paper on „Life Online 2009‟ at Comreg‟s ICT Research conference on 12 th Read our blog: www.amarach.com/blog Cover image cred: http://www.contractoraccountants.com/2010/09/22/coalition-government- will-be-on-the-lookout-for-tax-evaders/ The Taxpayers’ Perspective 38

×