The rate of DIRT was reduced to 37% in Budget 2018 - Leaving Cert Economics - Question 6 - 2018
Question 6
The rate of DIRT was reduced to 37% in Budget 2018.
(i) What do the letters DIRT stand for?
(ii) Outline one economic benefit for savers of this reduction in the r... show full transcript
Worked Solution & Example Answer:The rate of DIRT was reduced to 37% in Budget 2018 - Leaving Cert Economics - Question 6 - 2018
Step 1
What do the letters DIRT stand for?
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Answer
The letters DIRT stand for Deposit Interest Retention Tax. This tax applies to the interest earned on deposits held by individuals in financial institutions.
Step 2
Outline one economic benefit for savers of this reduction in the rate of DIRT.
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Answer
One economic benefit for savers from the reduction in the rate of DIRT is that savers will receive a greater return from their savings. With a lower tax rate on interest earned, individuals can retain more of their earnings, which encourages saving and thereby helps safeguard their financial future.
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