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What Ireland’s new 2022 tax plan means

IT seems like a long time since Finance Secretary Paschal Donohoe stood up during the Dail to announce Budget 2022.

But the income tax packages announced in October went into effect yesterday.
Stunts will start to see positive effects in their pockets with changes to Social Welfare, fuel prices and childcare.

Finance Minister Paschal Donohoe explains what the new tax plan means

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Finance Minister Paschal Donohoe explains what the new tax plan meansSource: PA: Press Association Julien Behal Photography

Pandemic operations, health care and other key sectors also saw spending adjustments in January.

And there will be new social welfare enhancements as well as the creation of thousands of new jobs and education courses.

Writing in the Irish Sun on Sunday, Finance Minister Donohoe said the income tax changes coming into effect would benefit all taxpayers.

In October, I announced a total Budget Day package of 4.7 billion euros, with a total spending of 4.2 billion euros and a target tax package of almost 520 million euros.

This tax package is intended to address the growing cost of living and income tax changes effective January 1, 2022 to benefit all taxpayers.

The budget is designed to help ease the cost-of-living pressure that many citizens and families are feeling right now as prices rise and inflation returns.

Most read in The Irish Sun

INCOME TAX

The government believes that the higher income tax rates are too low for taxpayers, and in recent years we have made significant progress to ensure moderate income earners are not pay a higher tax rate.

As of Budget 2018, the standard rate for single earners has increased from €33,800 to €36,800 effective today.

For single-parent families, the standard price is currently €40,800; and €45,800 for couples.

As a result of this change, few people earning around the median salary will be subject to the 40% income tax rate.

An increase of €50 for each of the main tax credits – personal tax credits, employee tax credits and earned income credits will also come into effect for tax year 2022. This will bring real benefits. for all taxpayers by reducing their overall tax liability.

Regarding the General Social Fee, the 2% margin cap will also increase with the increase of the national minimum wage from €10.20 to €10.50 per hour to ensure that a full-time worker benefiting from a pay increase will remain outside USC’s top rate.

The government is acutely aware of the impact of rising costs of living on individuals and families.

The income tax changes for 2022 are an important part of the Government’s response to support people facing this challenge.

Because of these incomes tax change, a single full-time worker with a minimum wage will have a net income of more than €400 this year.

A married couple with two children, with someone earning €47,000 will earn €465.

WELFARE

As well as the important income tax package, the Government has made a series of changes to welfare rate in Budget 2022 to protect the most vulnerable.

The Qualifying Child Payment increases by €2 per week for children under 12 years old and €3 per week for children over 12 years old; The Living Alone Allowance increases by €3 per week; The income threshold for the Working Family Payment increases by €10 per week and the Fuel Allowance increases by €5 per week to help lower income households offset the increase in the Carbon Tax.

The cabinet approved a €210 program last month to credit all electricity customers in the country with €100 by 2022.

This program will benefit 2.1 million account holders with a one-time payment to help offset rising prices in the energy market.

Legislation is currently being worked out to take effect for the plan.

It will be completed in the coming weeks with payments to be made shortly thereafter.

The recent increase in inflation is partly the result of temporary factors, which are expected to decline over time.

Minister Paschal Donohoe said the Government is aware of the impact of rising cost of living

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Minister Paschal Donohoe said the Government is aware of the impact of rising cost of livingCredit: JOHN THYS/AFP via Getty Images

https://www.thesun.ie/money/8144649/paschal-donohoe-what-the-new-tax-plan-means-2022/ What Ireland’s new 2022 tax plan means

Fry Electronics Team

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