Bar-room economics proves the rich are not skipping their round on tax

The report quoted statistics from the Revenue Commissioners that show half of all income tax — e6.5 billion — is paid by the top 6.5% of taxpayers and that one-third of all income tax is paid by the top 2.5% of taxpayers, numbering just 60,000 out of the total 2.4 million income earners.

PART of the cure for our economic ills will have to be increased taxes for higher income earners and the rich who own substantial assets. But there is a limit as to what extra tax can be levied from these sources without the intended effect of raising additional revenues being lost.

You may have received the same email recently that I have from a number of listeners to The Last Word. It is called “bar-room economics — how the tax system works”. It is attributed to a professor of economics at the University of Georgia called David R Kamerschen, although I have read also he has denied authorship and disavowed responsibility since the work has gone around the world on the internet.