Budget 2026: No changes to personal income tax planned

Also increasing carbon taxes again so the middle income worker getting up every day to drive to work, all the essential workers during covid getting hit on the double.
They said they will still be increasing welfare payments along with the double payments for Christmas.
They are removing the incentives to work especially in jobs that you need to be in work every day. Then they wonder why they can't get builders and other service workers?
 
joe sod said:
Also increasing carbon taxes again so the middle income worker getting up every day to drive to work, all the essential workers during covid getting hit on the double.
Click to expand...
It’s gonna add 2-3c a litre, so will “”hit”” the average driver by the princely sum of €20…for a whole year. Let’s not pretend that is in any way comparable to the say €1000 income tax reduction they could be making for average earners but are saving until closer to the next election.
 
messyleo said:
This is disappointing - no indexation of bands is an easy one for the Govt given likely fiscal illusion but a lot of ordinary people will feel it in their poccket over the next year

www.irishtimes.com

Budget 2026: No changes to personal income tax planned

Proposed €9.4bn package ‘poses a risk of overheating the economy’, oversight committee warns
www.irishtimes.com www.irishtimes.com
Click to expand...
One Minister was said to be seeking support from backbenchers at Leinster House on Wednesday night to increase his allocation. Two senior officials from different departments who spoke to The Irish Times were critical of the process, with one warning of the potential political fallout from the tight budget allocations.
Click to expand...
Don't we have this same circus and "news" every year? :rolleyes:
 
@GSheehy

Yes, I saw that yesterday on Twitter. The Book of the Bleeding Obvious.... prices are very elastic on the way up but are very sticky and not so elastic on the way down. We saw that with the massive increases in electricity prices in Aug - Dec22 citing wholesale gas prices. Yet, when gas prices tumbled towards the end of 2022, electricity prices remained way above early 2022 levels.... and still are at todays date. In truth, the service sector is suffering those elevated electricity prices too but the answer to that is not a vat reduction but to broaden the Regulator's remit to include a retail dimension. All the regulator is ever concerned about is supply onto the grid.

Personally I am not in favour of the vat concession. Prices are already way too high and in some way, that is the government's fault too.... hikes to minimum wage, commercial rates
 
The first of these regular tax cuts to the hospitality sector was funded by raiding private pension funds.

This time it will be funded by increasing the tax burden on workers.

The next one will probably be a repeat private pension fund raid.
 
nest egg said:
Let's call it out for what it is, a tax rise. They must be tone-deaf if they go ahead with this, to give a tax-cut to a non-strategic sector.
Click to expand...

Completely agree. Sadly the majority of people will likely interpret this as no change to income taxes, when in reality it's a tax increase like you say so the government escape the bad PR and unhappiness of the squeezed middle!
 
TheJackal said:
Steps like that would cause high earners to leave and more to just stop working
Click to expand...
Really? The typical >100k employee with ties to their community, children is school, etc. would just uproot everything and leave the country? If it were that simple why haven't they left already due to the levels of waste of the high tax rates they're already paying?

I doubt many are going to just stop working and give up a 100k plus income just because another small piece of it was taxed.
 
Leo said:
I doubt many are going to just stop working and give up a 100k plus income just because another small piece of it was taxed.
Click to expand...
Currently the marginal tax rate on incomes over €100k is 52.2%. Sinn Fein (and SD) propose increasing it to c.62% for individuals (or a whopping 70% for single income households with children) between €100k-€140k through elimination of tax credits and then 55.2% above €140k.

If you take a quick logical thought experiment. People currently in Ireland are clearly happy to pay 52.2%. I think it’s fair to say if it was 100%, most people would not continue to work for income over the the threshold. So for most people there is an inflection point at which they will make the call to stop working/leave. That inflection point is different for everyone. But it’s not a singular point at 99%. It will be a gradual effect between 55.2% and 100%

It’s very easy to say ‘ah it’s only x% more, they won’t mind’. That statement can be repeated indefinitely each year and simply can’t always hold true.
 
FinCork said:
serious addiction to overspending in areas of little or no return
Click to expand...
I’ve been accused of being a government ‘fanboy’ in the past. My perspective is the handling of the Irish economy since 2011, through COVID and Brexit has been nothing short of exceptional. Whilst issues remain, they always will, and by most tangible metrics I think these last two governments will be reflected on in 50 years as among the greatest ever….so I’m pretty positive…

The decision to impose tax increases on everyone this year to fund the hospitality VAT cut is a disgrace and an embarrassment. A kick in the face to everyone in the country who doesn’t own a restaurant.
 
The proposed B2026 measure strongly boosts tax revenue and it seems the dynamics are not well understood across society e.g., for a person on €75k who gets a 5% pay rise, the tax wedge rises 8.7%.
 
Last edited:
Zion2022 said:
The decision to impose tax increases on everyone this year to fund the hospitality VAT cut is a disgrace and an embarrassment. A kick in the face to everyone in the country who doesn’t own a restaurant.
Click to expand...

Its a triple kick in the face for those non restaurant owners who cannot afford to put decent food on the table and will not enjoy the luxury to eat out in a restaurant.
 
blackdog said:
The proposed B2026 measure is great for tax revenue and it seems the dynamics are not well understood across society e.g., for a person on €75k who gets a 5% pay rise, the tax wedge rises 8.7%.
Click to expand...
Whilst there is definitely some merit to increasing overall income taxes, particularly not indexing tax credits to try widen the tax net a bit, there’s clearly an issue in Ireland where exceptionally high marginal tax rates kick in too early. This needs addressing.

Also any benefit they’re getting is being wasted on showering the hospitality sector with money anyway.
 
You must log in or register to reply here.
Back
Top