Brendan Burgess
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A lot of media commentary is on the fact that a person hits the tax rate of 40% at a salary of €33,800 which is less than the average industrial wage.
But this is nonsense.
Here are the effective tax rates for people earning €40,000
I have left out PRSI as people on €40,000 a year pay €1,600 a year, which is great value for the pension and other benefits which that contribution earns them.
But even if you include PRSI, a married man with two children, earning €40,000 pays an effective tax rate of under 5%.
The effective tax rates are reduced even further by tax relief on pension contributions, private health care and medical expenses.
But this is nonsense.
Here are the effective tax rates for people earning €40,000
I have left out PRSI as people on €40,000 a year pay €1,600 a year, which is great value for the pension and other benefits which that contribution earns them.
But even if you include PRSI, a married man with two children, earning €40,000 pays an effective tax rate of under 5%.
The effective tax rates are reduced even further by tax relief on pension contributions, private health care and medical expenses.