According to reports in the Irish Independent, middle-income households will be paying LESS than 50 per cent tax on income for the first time in six years.
Several “senior sources” confirmed to the paper that the higher tax rate will be lowered to 49.5 per cent. A 0.5 per cent decrease. Though the sources claim that there is a “strong desire” to reduce the tax on middle-income earners to 49 per cent.
“The desire is there, it is now just seeing what is achievable in the final shake-up of the numbers,” a senior source told the Irish Independent.
I think the phrase you’re looking for is ‘woopty dooo’.
The budget is just weeks from being finalised and according to sources both Fine Gael and Labour wish to make a 2 per cent tax cut, if this is at all possible, while other focus is on the Universal Social Charge.
“We would love to do it, but certainly at this stage we are looking at a 1.5 per cent cut,” said the source.
However, while the proposed cut seems meagre should the Government introduce the reduction, those earning €70,000 could expect to be more than €1,000 better off, those earning €50,000 would be €650 better off and those earning €35,000 would be €350 better off.
Meetings will take place this week between Minister Noonan and Public Expenditure Minister Brendan Howlin before the draft budget will be brought before the Economic Management Council and Taoiseach Enda Kenny and Tánaiste Joan Burton.
Other proposals include a levy on all public-sector pensions over €60,000 proposed by Renua and reducing the gap between self-employed and PAYE workers on incomes above €100,000.
Tax cuts would certainly improve the lot of the so-called ‘squeezed’ middle. Though I think the other phrase you’re looking for is ‘don’t hold you breath’.
