No country for budding entrepreneurs
Sir, – Despite all claims of encouraging enterprise, the tax system works against budding entrepreneurs, especially those on modest incomes.
On an income of €10,000, an employee will pay no income tax, PRSI or USC. The self-employed will pay a total of €850.
On an income of €15,000, an employee pays €399 in USC, but that’s it. The entrepreneur pays a total of €2,349, an effective tax rate of 16 per cent.
Finally, on an income of €18,000, the entrepreneur pays €3,249, which is €2,370 more than an employee pays.
The tax system is more helpful as the enterprise grows, but works against small start-ups, a key ingredient in any recovery.
Minister for Enterprise, Richard Bruton, take note! – Yours, etc,
Howth, Co Dublin.