Income tax changes

[Brendan Burgess]

credits €100

€2000 Standard RAte cut off point

4.5% USC to 4%

Min wage to €12.70 per hour from 1 January

Entry to 4% 27,560 in line with min wage

 

[ShadyJaney]

Is there really an additional €2k in pockets of average €46k worker based on tax/isc changes only?

 

[PaddyW]

Worth approximately €800 from what I've read.

 

[Sarenco]

Full details of the budget (together with tables showing impact on various cohorts) available here -

PDF.js viewer

 

[gipimann]

Is there really an additional €2k in pockets of average €46k worker based on tax/isc changes only?

It's 2k change since 2021, not 2k from this year's budget. A bit of sleight of hand in the Minister's speech, I felt.

 

[joe sod]

It's 2k change since 2021, not 2k from this year's budget. A bit of sleight of hand in the Minister's speech, I felt.

Imagine they did that with the welfare increases, oh actually that includes last year's increases aswell. There would be riots

 

[ShadyJaney]

Tricky Mickey McGrath!!

 

[fayf]

Many would not have expected an increase of €6,700 to the standard rate band, over last 3 budgets.

 

[Protocol]

The SRCOP has lagged behind wage growth for years.

Credit to Gerard Brady of IBEC for the chart.

 

[fayf]

The SRCOP has lagged behind wage growth for years.

Credit to Gerard Brady of IBEC for the chart.

100% Agreed, but an almost 19% increase, over last 3 budgets is someway helpful

 

[fayf]

Updated chart:

 

[Purple]

100% Agreed, but an almost 19% increase, over last 3 budgets is someway helpful

It should be much higher. The highest rate shouldn't kick in until earning go above twice the average industrial wage.

 

[Truffade]

It should be much higher. The highest rate shouldn't kick in until earning go above twice the average industrial wage.

isn't the real problem that the jump from 20% to 40% is much too steep, and that we should have a middle rate of 30%?

40% + PRSI + USC - making a total marginal rate of ~50% is way too high on relatively modest incomes

 

[Purple]

isn't the real problem that the jump from 20% to 40% is much too steep, and that we should have a middle rate of 30%?

40% + PRSI + USC - making a total marginal rate of ~50% is way too high on relatively modest incomes

Yes, both.
Nobody should be paying a marginal rate of over 50% on incomes below €200,000.
Everybody should be paying some tax. I'd charge PRSI of 15% on all income with no decrease for retirees. I'd then have income tax at 10% on all income over €15,000 with progressive increases of 10% up to a maximum of 30%. That's a maximum payroll deduction of 45%.
I'd reduce the inheritance tax threshold and increase the rate.
I'd at least triple the rates for property tax.