"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."
"Pay rises will push more people into the higher 40pc income tax bracket, director of Chartered Accountants Ireland, Cróna Clohisey said. 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."
A worker on a €50,000 salary will pay almost €500 more next year because tax credits were not increased, income tax bands were not widened for inflation and wages, and employee PRSI rose by 0.1 percentage point. Employee PRSI increased from 4.1% to 4.2%, costing about €56 on a €50,000 income. Pay rises will push more people into the 40% tax bracket since the single standard rate cut-off remains €44,000 and married one-income threshold €53,000. The PRSI rise is intended to fund keeping the pension age at 66 and higher initial Jobseeker's payments.
Read at Irish Independent
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