Ireland has adopted a republic with a parliamentary democracy. The “Oireachtas” (national parliament) is divided into two parts. One branch encompasses the office of the president, although it should be noted that the president has very limited power in comparison to that of the Prime Minister, who is elected by the House of Representatives. The current president is Michael D. Higgins. The second branch contains the Senate and House of Representatives. Irish Parliamentary History reports that the Senate is called Seanad Éireann and the House is called Dáil Éireann. The president can actually serve two seven year terms. Furthermore, in a parliamentary democracy more importance is placed upon the Senate and House members than the president. Ireland adopted a constitution in 1937 and it is considered superior to all other law. If the constitution is altered, it must undergo the complex process of constitutional referendum.
According to the Heritage Foundation, Ireland is ranked number 8 globally in terms of economic freedom index of 2016. The country has a mixed market economy with a value upon individual freedoms, which means that the government has some role in the financial situation of the country, but at the same time civilians have secured property rights and the ability to enter/exit the market at their will, start businesses, and spend money as they wish. The highest tax rate for an individual in the US is 39.6 percent of income, and in Ireland it is 40 percent. However, Ireland has a significantly lower top corporate tax rate (the tax rate a corporation pays the government) at 12.5 percent. The US’s maximum corporate tax rate is quite high at 35 percent.
In Ireland civilians are subject to a progressive personal tax rate. Essentially, this means that a person’s tax rate is proportional to their income, and if the amount of income increases or decreases, so does the tax rate. For single taxpayers, the maximum rate for an income above $48, 518 per year is 41%. However, married couples may be subject to even higher tax rates and seniors above 65 years old are eligible for tax decreases. Ireland’s government has fostered the arts ever since adopting a policy in 1969 dictating that income tax is not extracted from earnings of writers and artists. Gale: Global Issues in Context tells that most corporations are taxed at a single rate of 12.5% and passive income is taxed at a rate of 20%. Passive income encompasses earnings that do not require much effort to obtain, such as those acquired in a limited partnership (when a person has low liability and involvement in an enterprise).
According to the Heritage Foundation, Ireland is ranked number 8 globally in terms of economic freedom index of 2016. The country has a mixed market economy with a value upon individual freedoms, which means that the government has some role in the financial situation of the country, but at the same time civilians have secured property rights and the ability to enter/exit the market at their will, start businesses, and spend money as they wish. The highest tax rate for an individual in the US is 39.6 percent of income, and in Ireland it is 40 percent. However, Ireland has a significantly lower top corporate tax rate (the tax rate a corporation pays the government) at 12.5 percent. The US’s maximum corporate tax rate is quite high at 35 percent.
In Ireland civilians are subject to a progressive personal tax rate. Essentially, this means that a person’s tax rate is proportional to their income, and if the amount of income increases or decreases, so does the tax rate. For single taxpayers, the maximum rate for an income above $48, 518 per year is 41%. However, married couples may be subject to even higher tax rates and seniors above 65 years old are eligible for tax decreases. Ireland’s government has fostered the arts ever since adopting a policy in 1969 dictating that income tax is not extracted from earnings of writers and artists. Gale: Global Issues in Context tells that most corporations are taxed at a single rate of 12.5% and passive income is taxed at a rate of 20%. Passive income encompasses earnings that do not require much effort to obtain, such as those acquired in a limited partnership (when a person has low liability and involvement in an enterprise).