The government's decisions on tax cuts and welfare increases will significantly impact workers and vulnerable populations, aiming to distribute the €25bn surplus effectively while addressing rising living costs.
The entry point for the 40% top rate of tax is set to rise, alongside reductions in the Universal Social Charge, providing immediate relief for middle-income earners, collecting momentum for fiscal responses.
Amidst rising living costs, the government has committed €2bn towards a cost-of-living package to offer immediate financial support, amidst debates on the broader implications of tax and welfare changes.
With a €25bn budget surplus and unexpected tax revenues, the government faces pressure to thoughtfully spend the funds, balancing tax cuts, welfare increases, and necessary tax hikes to certain sectors.
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