Tax Increases in the 2024 Budget (10Oct23)

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Flybytheseat

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While I'm sure much will be made by the government's spin and propaganda machine (and by their cheerleaders in the media such as RTE) about tax cuts in the 2024 budget, I'm quite sure they won't draw people's attention to some of the inherent/hidden tax increases:

1. Failure to increase each and every tax band by at least the rate of annual wage inflation is a TAX INCREASE. Both the 20% and higher rate bands need to be raised on an annual basis to maintain the income tax take at it's current level.

2. Failure to increase tax credits by at least the rate of annual wage inflation is a TAX INCREASE.

3. Failure to increase the Pensions SFT (€2M) by at least the annual rate of wage inflation since the last increase is a TAX INCREASE. Same applies to the €115k max salary allowed for tax deductions on pension contributions.

4. Failure to increase each and every social welfare payment by the annual CPI is a BENEFIT REDUCTION. E.g. a €12 increase in social welfare payments is in fact not keeping up with inflation so is a reduction in state benefits in real terms and will make it harder for those dependant on those benefits to make ends meet.

5. Failure to increase CAT thresholds by the annual CPI is a TAX INCREASE.

6. Failure to increase ALL ! USC bands by at least the rate of annual wage inflation is in fact a TAX INCREASE. Same applies to PRSI.

7. Failure to increase the CGT tax free allowance from €1270pa is a TAX INCREASE. This figure hasn't been adjusted in many years and has been deflated massively in value.

8. The list goes on and on but you get the gist. I don't like the way the government and state sponsored media spin some of the budget tax and welfare changes as generous when in many cases they are actually increases in tax or reductions in benefits as not linked to inflation.

Discuss......
 
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But where do you think the finances come from to pay all the benefit increases? That "money tree" is not growing as fast as required.
 
@Flybytheseat I hope you are correct and that they don't reduce taxation or, more importantly, increase social welfare rates generally or pensions in particular.
We are at full employment with a high rate of inflation. We don't need Bertie style populists pro-cyclical economic policies.

Unfortunately the left wing populist media who lap up the nonsense from the Shinners and the economically illiterate electorate will punish the government if they do the right thing.
 
Conan said:
But where do you think the finances come from to pay all the benefit increases? That "money tree" is not growing as fast as required.
Click to expand...
As it is the Money Tree is nearly dead. There are also plans to keep people on paying Class A PRSI until they are 70, unless they qualify for the contrib pension.
 
There was alot of publicity about the rates bands being increased from 40 to 42K before hitting the high tax bracket and tax credits being increased by 100euros . All of this is of course welcomed and long overdue. Of course all the talking heads and ngos were calling for no tax reductions due to inflation but curiously were not calling for restraint on welfare and spending increases.

They also calculated the yearly savings for a 40K worker of around 700 euros per year but curiously omitted the yearly welfare increases for jobseekers allowance. So I have done the calculations for them
52 multiplied by 12euros plus 230euro for the double payment gives a grand total of 850euros per annum welfare increase.

Therefore those on welfare still getting more out of this budget than those working earning 40k and alot more than those working earning 30k. No media fanfare about that though
 
All in all this budget has INCREASED rather than reduced taxes. The adjustments in bands (USC & Income) are below wage inflation (upper USC band wasn't touched in the budget). Tax Credit adjustments didn't stay in line with wage inflation. There was no adjustment to Pension SFT or max salary allowable for pension contributions (so big TAX INCREASE). With the PRSI increase the max marginal rate of tax for PAYE employees has actually been raised from 52% to 52.1% !

Also the increase in social welfare payments didn't keep pace with the annual CPI increase so everyone is a loser and the government is trying to spin it as smelling of roses.
 
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The transferable standard rate cut off point between spouses is 9,000 euro - not only the same as last year, but twenty years ago. This is explicit policy to separate parents from their children - also affecting couples where one is disabled and cannot work. THIS IS A TAX INCREASE
 
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