We talked previously about government representatives talking about how only 50% of workers pay income tax – and why this is not a good measure of the contribution low paid workers make to the government coffers as an effect of their employment.  We looked at a few examples of contributions at low pay levels.

So it’s clear that Income Tax is but a small part of the contribution a low paid worker makes.

But how does this compare to other countries in the EU?

We asked Fabien to look at the contribution the typical French worker makes to the coffers.

Now lets me certain of this – France is firmly positioned at one end of the spectrum for employment contributions and that the costs of employment are being blamed in part for the stubbornly high unemployment levels there.

But what a Difference! While I don’t think many in the country would like to see 37% of a job worth €12,840 going to the government, it does illustrate the massive differences in how governments are financed within the EU.

As well as the extent to which low paid workers could be taxed. Let’s see how this moves in December’s Budget.

If you have any comments on this post, you can contact refunds@redoaktaxrefunds.ie or john at 05991 73300