Her Money: Expert reveals where your taxes actually go

Many of us feel lost when it comes to understanding our taxes

Trying to understand where all that money goes, what it is spent on, and how it helps the country can be pretty baffling.

We would much rather not have to think about it but knowing more about your taxes is pretty important.

Paul Merriman CEO Fairstone Ireland recently spoke to Her.ie to answer the questions we've been avoiding for a little too long.

Speaking about where your taxes actually go, Merrmian explained that Ireland's tax revenue mostly comes from corporations.

"Ireland’s tax revenue is primarily devoted to social welfare, health care, and learning. These include payments for pensions, job-seekers’ allowance, and other unemployment benefits."

Your taxes will also go toward medical care as well as educational institutions.

Paul added, "Besides that, taxes pay for infrastructure development projects such as roads and bridges construction, public order maintenance, and environmental protection measures aimed at maintaining the minimum level of services necessary for living a good life."

There's no doubt we'd all like more control over where our taxes go, but Paul believes more needs to be invested in healthcare, property, and tackling our homeless crisis.

He stressed, "Enhanced funding for healthcare is crucial to reduce waiting times, improve mental health services, and ensure equitable access to quality care.

"Investment in property can address the housing crisis by increasing the supply of affordable homes and improving rental market stability.

"Additionally, allocating more resources to combat homelessness is essential to provide immediate support and long-term solutions for those affected, ensuring a fair and inclusive society."

Do Irish people have a misconception about where our taxes are going?

"Many Irish people do have misconceptions about where their taxes are going," Paul revealed.

"A common misunderstanding is that a significant portion of tax revenue is wasted or used inefficiently.

"In reality, most taxes fund essential public services such as healthcare, education, and social protection.

He stressed that these funds are "crucial for maintaining the welfare state, improving infrastructure, and supporting vulnerable populations".

The Irish public deserves greater transparency and education on budget allocation and spending.

Paul believes this could help dispel these misconceptions of how tax revenues contribute to societal well-being.

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