A survey of Irish taxpayers' opinions and preferences in relation to taxes, government spending and future budget balances.

1. The Taxpayers’ Perspective 1

2. Balancing Act
The Irish Government faces a difficult
balancing act over the coming years in
response to the economic crisis.
Irish taxpayers will be expected to bear
much of the burden of restoring the
public finances to a sustainable trend.
This special Amárach Research study
explores the current perceptions and
preferences of Irish taxpayers as the
Government prepares its 2011 Budget
and 4-Year Plan.
The Taxpayers’ Perspective 2

3. Methodology
The findings reported in this study
are from the monthly Amárach
Research omnibus survey.
1,000 adults over the age of 15 in the
Republic of Ireland were interviewed
between 11th and 20th October 2010.
The quota-controlled sample
comprised 850 online interviews and
150 face-to-face interviews, the latter
to include groups with low levels of
internet usage.
The combined results have been
weighted to represent the total adult
Irish population.
The Taxpayers’ Perspective 3

4. 1. Taxing Times
whose burden?
2. Could Do Better
value for taxes
3. Balancing Act
the big debate
The Taxpayers’ Perspective 4

5. 1. Taxing Times
whose burden?
The Taxpayers’ Perspective 5

6. The Coping Classes
Although there are different ways
of measuring the distribution of
taxes (including direct and indirect
taxes) it is a little more
straightforward for workers in
relation to wages and salaries.
In our survey, we asked those
adults in employment to calculate
the share of their earning
deducted as taxes and other
deductions, and to say how much
more they would be willing to pay
in light of the impending budget.
The Taxpayers’ Perspective 6

7. Pay Up
The typical employee in our survey claims that he or she
pays just over a quarter of their wage or salary in taxes
and other deductions.
Men pay a higher percentage than women, and older
workers pay a higher percentage than younger workers.
Public sector workers, and employees who belong to
trade unions also pay higher percentages than others…
The Taxpayers’ Perspective 7

8. Taxing Incomes
Base = All Employees
The Taxpayers’ Perspective 8

9. Pay Up
Overall, equal proportions of Irish workers consider the
amounts deducted from their salaries to be ‘fair enough’ or
‘too high’ (49% vs 49%), and only one worker in fifty thinks
that their income deductions are ‘too low’.
Young workers are less likely than other age groups to
say that their income deductions are too high.
Public sector workers, and trade union members are more
like than private sector workers/non-members to consider
their wage or salary deductions to be too high…
The Taxpayers’ Perspective 9

10. Enough is Enough
Base = All Employees
The Taxpayers’ Perspective 10

11. Pay Up
The average employee would be prepared to pay an extra
3 percentage points in taxes on their incomes in response
to the Government’s budget requirements for 2011.
Only 16-24 year old employees would be prepared to pay
less than they currently have deducted, with the oldest
workers prepared to see the biggest increase.
There were otherwise few differences in the percentage
extra that workers in different sectors etc are willing to see
deducted…
The Taxpayers’ Perspective 11

12. A Little Extra
Base = All Employees
The Taxpayers’ Perspective 12

13. 2. Could Do Better
value for taxes
The Taxpayers’ Perspective 13

14. Enough Already
Tax isn’t just about percentages
and burdens, it’s also about
fairness and value for money.
In our survey, we asked all adults
– employees and others –
whether the felt they were paying
a fair enough share of taxes.
We also examined their
willingness to pay more taxes (not
just income taxes on those in
employment), and attitudes
towards new taxes such as a
property tax.
The Taxpayers’ Perspective 14

15. Pay Up
Turning from the opinions of employees to those of the
total adult population, the majority of Irish adults (53%)
agree that ‘I pay more than my fair share of taxes right
now’. Only one in five disagrees.
35-44 year olds are more likely to agree than other age
groups, and men more than women.
Public sector workers are significantly more likely to agree
they pay more than their fair share than are private sector
workers, similarly with trade union members vs non-
members…
The Taxpayers’ Perspective 15

16. Unfair Shares
Base = All Adults
The Taxpayers’ Perspective 16

17. Pay Up
Over 6 in 10 adults disagree with the view that ‘people like
me should be prepared to pay more tax’.
There are few significant differences by age or gender,
though those in lower socio-economic groups (C2DEs)
are more likely to disagree than those in higher groups
(ABC1s).
As before, public sector workers are significantly different
from private sector workers (the former disagree much
more than the latter), thought there is a less significant
gap between union and non-union members…
The Taxpayers’ Perspective 17

18. Solidarity
Base = All Adults
The Taxpayers’ Perspective 18

19. Pay Up
There is a high level of disagreement with the view that
‘on balance we have a fair tax system in Ireland’ – 60%
disagree, and only 1 in 4 agree.
Those who report already paying the highest percentages
of deductions from their incomes (ABC1s, public sector
workers, trade union members) are significantly more
likely to disagree with this view than others…
The Taxpayers’ Perspective 19

20. Getting It Right
Base = All Adults
The Taxpayers’ Perspective 20

21. Pay Up
However, despite perceptions of unfairness and already
significant levels of deductions, there is considerable
agreement with the view that ‘people on low incomes
shouldn’t have to pay income tax’ – 63% agree with this.
Women and older adults over 45 are more likely to agree
with this view than others, whilst trade union members are
more likely to disagree with the viewpoint than non-union
members…
The Taxpayers’ Perspective 21

22. Less Fortunate
Base = All Adults
The Taxpayers’ Perspective 22

23. 3. Balancing Act
the big debate
The Taxpayers’ Perspective 23

24. Don’t Look Down
One influence on taxpayers’
perceptions of ‘value for money’ is
their sense of how effectively and
efficiently government spends their
money.
In our survey, we asked all adults
whether they felt the Irish
government is spending their
money wisely.
Finally, we asked the crucial
question: what should the balance
be between tax increases and
spending cuts in the forthcoming
Budget 2011.
The Taxpayers’ Perspective 24

25. Pay Up
A large majority (64%) disagree with the view that ‘I have
a clear understanding of how the government spends
taxpayers’ money’.
Women and 25-34s are more likely to disagree with this
view than other adults, as are non-union members
compared to union members.
Curiously, public sector workers are as equally ‘unclear’
about government spending of taxpayers’ money as
private sector workers…
The Taxpayers’ Perspective 25

26. Some Misunderstanding
Base = All Adults
The Taxpayers’ Perspective 26

27. Pay Up
In light of the findings in the previous chart, it isn’t
surprising to learn that a huge majority (84%) disagree
with the view that ‘I trust the government to spend
taxpayers’ money wisely’.
Public sector workers and trade union members are even
more likely to disagree than their counterparts in the
private sector or those employees who not union
members…
The Taxpayers’ Perspective 27

28. Wise Heads
Base = All Adults
The Taxpayers’ Perspective 28

29. Pay Up
With regard to a property tax, a slim majority (51%)
disagree with the idea that ‘the Government should
introduce a property tax to fund our local authorities’.
Disagreement is higher among 35-44 year olds, private
sector workers and trade union members.
Agreement (1 in 3 adults overall) is highest among those
over 45 (who possibly remember local authority rates from
before they were abolished in 1977)…
The Taxpayers’ Perspective 29

30. Property Tax
Base = All Adults
The Taxpayers’ Perspective 30

31. Pay Up
In terms of ‘value for money’, two thirds of Irish adults
disagree with the statement ‘I feel I get more back from
government services than I contribute in taxes’.
Women are more likely than men to disagree, as are 35-
44s, ABC1s, and trade union members compared to their
peers.
Fewer than one in five (17%) agree with the statement,
higher among 16-24s and C2DEs…
The Taxpayers’ Perspective 31

32. Return on Investment
Base = All Adults
The Taxpayers’ Perspective 32

33. Pay Up
On the crucial issue of how the Government should meet
its objects for Budget 2011 and beyond, it is clear that
Irish adults think the greater part of the balancing process
should come from spending cuts, not tax increases.
The average proposed mix of tax increases and spending
cuts is 30% for tax increases and 70% for spending cuts.
There is remarkable consistency across all demographic
groups and employee categories in relation to this self-
proposed balance of tax increases and spending cuts…
The Taxpayers’ Perspective 33

34. A Little Extra
Base = All Adults
The Taxpayers’ Perspective 34

35. From Here to There
The Taxpayers’ Perspective 35

36. Crossing Over
Our findings provide some guidance to
those making difficult choices in the
weeks and months ahead.
Clearly there is a preference for tax
increases and spending cuts to support
the budget balancing act now before us.
However, most taxpayers feel they are
already contributing enough – so
convincing them to do more will require
considerable skill.
Greater clarity about how the
government will prioritise its spending in
the years ahead – securing better value
in the process – will undoubtedly help.
The Taxpayers’ Perspective 36

37. Amárach Research
11 Kingswood Business Centre
Citywest Business Campus
Dublin 24
T. (01) 410 5200 E: gerard.oneill@amarach.com
The Taxpayers’ Perspective W: www.amarach.com B: www.amarach.com/blog 37

38. Appendix: About Amárach
We are Ireland’s largest independent market
research agency, in business since 1989.
3 rd March 2009
We focus on delivering two key benefits to our Welcome to the latest edition of consumerforesight from Amárach Research. We
clients: have set out to make consumerforesight a more interactive and informative
research and planning tool for subscribers. Feel free to invite others to register
for our free eLetter on our home page.
1. Consumer Foresight
– using research to say ‘what next’. Two months gone, ten to go. Like Keith Richards, we‟re all at the
stage of “it‟s good to be here – it‟s good to be anywhere”. But it
is tough out there. Against a background of industrial unrest
(even the Gardaí are protesting!), we shouldn‟t be surprised if
2. Business Insight consumers are on something of a „go slow‟ themselves.
– using research to make business decisions. But it won‟t last. It‟s too early for green shoots, but as time goes
by people will want to buy: especially those still in secure jobs
who are faced with extraordinary bargains in shops, hotels and
car showrooms. Irish consumers don‟t really do hair shirts.
When we have money we can afford to spend then we‟re usually
We provide the full array of market research inclined to spend it: assuming we‟re getting good value and not
being ripped off.
services including: Don’t forget: for every person in Ireland with a mortgage,
loan or ‘maxed out’ credit card there is another person
without any debt (at all). W hat are you doing to tap the
‘worried well’ market?
- Quantitative: face-to-face, telephone, web
- Qualitative: focus groups, in-depths, ethnographic Before you embark on a new brand or Business is about passion: so for that matter is
- Field Only: for international & domestic agencies business just remember Seth Godin‟s
three things you need read more
the economy – check out some wise words on the
role of passion in success read more
With the world all „a-twitter‟ don‟t forget How not to do food marketing: quite possibly the
the future is on the TV read more worst food in the world read more
It‟s all down to psychology – an Amárach Optimistic people are healthy and happy – even
Register for our free fortnightly eletter presentation on how Irish consumers will
lead us to recovery read more
when the economy is collapsing around them:
what are you doing for optimism? read more
consumerforesight at: www.amarach.com
Amárach Research will present a paper on „Life Online 2009‟ at Comreg‟s ICT Research conference on 12 th
Read our blog:
www.amarach.com/blog
Cover image cred:
http://www.contractoraccountants.com/2010/09/22/coalition-government-
will-be-on-the-lookout-for-tax-evaders/
The Taxpayers’ Perspective 38