Half think that the top tax rate should not fall below 50,000 euros

Most people think workers should be allowed to earn more before they’re hit by the top tax rate.

According to a taxpayer sentiment survey, there is a strong preference for removing average earners from the higher tax net.

The study found that nine out of ten people think workers should be allowed to earn over €40,000 before they are hit by the higher income tax.

Half of the respondents believe that people should not pay the top tax rate of 40 percent unless they earn more than 50,000 euros.

This has led to the government being asked to live up to its promise that workers would not pay the maximum rate for earnings below €50,000. Four in ten think the 40% tax rate should not apply to someone earning less than the average Irish salary of €45,000.

Due to budget changes last September, the point at which the higher income tax rate of 40% applies has been raised to €40,000.

This measure alone is worth around 640 euros annually to higher taxpayers. However, the results of the Taxback.com survey, which surveyed more than 1,200 taxpayers, show when the higher income tax rate is still perceived as too low by the majority of the public.

Marian Ryan, Consumer Tax Manager at Taxback.com, said: “Most people seem to recognize that for those earning the average wage or just above, the higher tax rate is a harsh penalty for making a little extra cash.”

She said the strength of support for raising the upper income tax bracket could be due to acknowledgment of middle earners’ struggles.

These are the households who often bear the brunt of Ireland’s soaring inflation and higher tax rates, and who typically feel they receive very little support from government in return, Ms Ryan said.

She added: “Just over four years ago, Fine Gael pledged to raise the level at which people claim the higher income tax rate to €50,000.

“This poll suggests that the general consensus is that the government should have taken bolder action in the 2023 budget to meet that target sooner rather than later.”

She called on the government to keep its promise of 50,000 euros


https://www.independent.ie/business/personal-finance/tax/half-think-top-tax-rate-should-not-kick-in-below-50000-pay-42332926.html Half think that the top tax rate should not fall below 50,000 euros

Fry Electronics Team

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