Sir, – I wish to challenge the widely quoted claim that the Irish income tax system is ‘among the most progressive’ (“Are middle earners ripped off by the Irish income tax system?” July 30th).
Using The Irish Times budget calculator for 2026, the impact of income tax, USC and PSRI on gross annual earnings ranging from €25,000 up to €1 million in €25,000 intervals was explored. This showed that for a sole salary earner, married with no children, total deductions progressed from 5.5 per cent to 50.2 per cent at the lowest to highest ends of this range respectively.
Delving into the data revealed that earners moving from €50,000 to €75,000 experienced the greatest progression in their effective tax rate: a jump of 10.5 per cent.
This incremental rate declined rapidly as earnings rose further and the progressiveness was a mere 0.2 per cent for highest earners moving into the millionaire class.
RM Block
The bottom line is that the Irish tax system is highly progressive only at lower earning levels and exhibits no progressiveness – ie, becomes regressive – at higher levels. This begs the question as to whether a new higher tax rate should be introduced to maintain the system’s progressiveness in the interests of equity and fairness. – Yours, etc,
BRIAN FLANAGAN,
Blackrock,
Co Dublin.
