Big boost for Irish workers as Taoiseach signals tax changes worth at least €1,000

WORKERS should only have to pay the higher income tax rate if they earn more than 50,000 euros, demanded Taoiseach Leo Varadkar.

Single people currently pay 20 percent income tax up to EUR 36,800 and then 40 percent income tax on any additional wages.

The higher tax margin to $50,000 could save the average worker at least $1,000 a year.

2

The higher tax margin to $50,000 could save the average worker at least $1,000 a year.Credit: Alamy
Taoiseach Leo Varadkar said he wanted workers to be able to keep more of their hard-earned wages.

2

Taoiseach Leo Varadkar said he wanted workers to be able to keep more of their hard-earned wages.Credit: PA:Press Association

This varies slightly depending on marital status and whether you have children.

In the 2023 budget, the government raised the limit for the higher tax band, which will allow workers to earn up to €40,000 over the next year without entering that 40 percent tax band.

Earlier this year, Leo Varadkar proposed a new 30 percent income tax band that would benefit middle earners.

The Treasury has been tasked with reviewing the proposal, however a series of complications appear to have put the idea on hold.

Urgent cashback deadline warning - as many are unaware of what tax credits are owed
Lottery bosses reveal locations where 10 players won €50,000 EACH in Friday's drawing

The Fine Gael leader is now aiming to increase the higher tax margin so those on lower wages keep more of their money.

In a round table discussion ahead of Christmas, the Taoiseach said people shouldn’t have to pay the higher tax rate until they earn more than $50,000 a year.

This could save an employee on €45,000 at least €1,000 per year in income tax.

He said: “I believe work should pay off. And I think that in Ireland people on very modest incomes have to pay the highest rate of income tax.

“It’s our turn [a standard rate cut-off point] of €40,000 next year. I would like to move this up.

“The policy goal I have set is that we get to the point where people can earn up to €50,000 a year without having to pay the highest income tax rate.

“It might take a few budgets to get there. But I firmly believe that we should do that, be it by raising the standard tax ceiling or by a middle tax rate [of 30pc].

“I didn’t get stuck with that [the new 30pc middle tax rate that he himself proposed] and I never was. But of course we have to discuss this at government level before the next budget.

“But if public finances allow it, I want us to continue down this path so you can earn more without having to pay the highest rate of income tax.

“We have taken a big step forward in the last few years. And I want it to stay that way.”

https://www.thesun.ie/money/9961036/ireland-income-tax-changes-leo-varadkar-fine-gael/ Big boost for Irish workers as Taoiseach signals tax changes worth at least €1,000

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button