"A person on a typical €50,000 salary will end up paying almost €500 extra in income tax, USC and PRSI next year. This is due to the budget decision of Finance Minister Paschal Donohoe not to increase the tax credits and the failure to widen the income tax bands to account for inflation and wage rises. And PRSI has gone up again this year."
"It is the first time in five years that the income tax bands have not been increased. This means that more of people's income will be taxed at the higher rate. In what is known as the standard rate cut-off point, single people can earn €44,000 before they hit the higher 40pc income tax rate. That will not change. For a married couple with one income up to €53,000 is taxed at 20pc. A married, two-income couple who earn €88,000 is taxed at 20pc."
"All workers will be impacted by the increase in 0.1pc employee PRSI from this month. PRSI went from 4.1pc to 4.2pc for employees this month. This will cost someone on €50,000 a year an extra €56. Ms Clohisey calculated that a single worker on €50,000 would be €475 worse off. The calculation assumes no pension contributions or other benefits or allowances."
A person earning €50,000 will pay almost €500 extra next year in income tax, USC and PRSI because tax credits and income tax bands were not increased to match inflation and wage rises. Employee PRSI increased by 0.1 percentage points from 4.1% to 4.2%, costing a €50,000 earner about €56. The standard rate cut-off points remain unchanged: singles €44,000; married one-income €53,000; married two-income €88,000. Pay increases will push more taxpayers into the 40% higher rate. The PRSI rise funds maintaining the pension age at 66 and higher initial Jobseeker's payments, reducing take-home pay and potentially lowering consumer spending.
Read at Irish Independent
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