Professional tax code

 To progressively tax the Republic of Ireland means to implement or adjust Ireland’s tax system so that individuals and entities with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. This is known as a **progressive tax system**.

### Current Situation in Ireland

Ireland already operates a progressive income tax system, with multiple income tax bands and rates, as well as social insurance and the Universal Social Charge (USC). However, some critics argue that the system could be made more progressive.

### How to Progressively Tax Ireland Further

**1. Increase Upper Tax Bands**

- Raise the top rates for the highest income earners. For example, increase the 40% rate for incomes above €42,000 (single) or €84,000 (couple) to 45% or higher.

**2. Add New Tax Bands**

- Introduce one or more new income tax bands for ultra-high earners, e.g. 50% for incomes above €150,000.

**3. Adjust Universal Social Charge (USC)**

- Make the USC more progressive by increasing rates for high incomes and/or lowering rates for low incomes.

**4. Reduce Tax Reliefs for High Incomes**

- Limit or phase out tax reliefs and deductions for those earning above certain thresholds.

**5. Reform Capital Gains and Dividends Tax**

- Increase rates for capital gains and dividends received by wealthy individuals.

**6. Wealth Taxes**

- Introduce taxes on wealth, property, or inheritance, targeting high-value assets.

**7. Corporate Tax Adjustments**

- Consider minimum effective corporate tax rates, especially for large multinationals.

### Example: New Progressive Income Tax Bands

| Income Range       | Current Rate | Proposed Rate |

|--------------------|--------------|--------------|

| < €42,000          | 20%          | 20%          |

| €42,000–€150,000   | 40%          | 40%          |

| €150,000–€250,000  | N/A          | 45%          |

| > €250,000         | N/A          | 50%          |

### Potential Benefits

- **Reduces inequality:** Higher earners contribute more.

- **Raises revenue for public services:** Funds for health, education, infrastructure.

- **Protects low and middle-income earners:** Less tax burden on those who can least afford it.

### Potential Drawbacks

- **Risk of capital flight:** Wealthy individuals may relocate.

- **Disincentives for investment and work:** May reduce incentives for high earners.

- **Complexity:** More complicated tax system.

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**Summary:**  

Progressively taxing the Republic of Ireland means increasing the tax burden on higher earners while protecting lower earners, usually by adjusting income tax bands, rates, and introducing or enhancing taxes on wealth and capital. This can help reduce inequality and fund state services, but should be carefully balanced to avoid unintended economic consequences.