High Earners and Tax: Media Misinterpret DoF Report Again Department
This post was written by Karl Whelan
The Irish Times reports:
For example, the latest official breakdown on the 423 highest earners in the State showed that for 189 individuals who earned €500,000 or more in 2008, the average tax rate was 19.86 per cent.
I’m afraid this isn’t true. This report does not relate to the 423 highest earners in the State, as I’ve written about here, here and here. It only relates to a subset of the highest earners who would have paid less than 20 percent because of tax loopholes but who are not doing so now because of the introduction of a minimum rate.
To be fair, I don’t blame the journalists because the relevant document is so poorly written. At this point, however, I really think the folks in the Department of Finance responsible for this report should consider issuing an official clarification.
Update: In comments, Joseph O’Toole reckons I’m being mean to the Department of Finance because this is a Revenue Commissioners report. Well, I found the report here on the Department’s website, which suggests that they are responsible for its release. But, yes, the report is put together by Revenue Commissioners staff. So let me rephrase my point: Whoever is responsible for this report might think about issuing a clarification.