BUDGET SPECULATION STARTS HERE
Speculation on what will and won’t be in the Budget has started in earnest this month. It seems inevitable that the upcoming Budget will have a few nasty income tax surprises in store, regardless of political promises made during the election. “Irish workers could easily be between €1,000 and €2,000 less well off once the Budget kicks in in two months’ time” writes Louise McBride in the Sunday Independent.
“Chances are these hikes will come in the guise of cuts to income tax bands and credit – tax hikes in all but name,” says McBride. Self-employed people earning over €100,000 already pay around 55% on their wages — 41% in tax plus a 10% Universal Social Charge plus 4% PRSI. International studies show that the closer tax comes to 50%, the more likely is that those who can will emigrate to lower taxation countries.