How 'stealth' tax rises mean workers will end up paying more next year

"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."

"PRSI goes up again this year, adding to costs for workers. This is to fund maintaining the pension age at 66 and paying for the recently introduced higher Jobseeker's payments for the first three months after someone loses their job. 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."

A person on a €50,000 salary will pay almost €500 extra in income tax, USC and PRSI next year. The budget did not increase tax credits or widen income tax bands to reflect inflation and wage growth. The standard rate cut-off point remains €44,000 for single people, €53,000 for a one-income married couple, and €88,000 for a two-income married couple. PRSI increased by 0.1 percentage point from 4.1% to 4.2%, costing someone on €50,000 an extra €56. The PRSI rise funds maintaining the pension age at 66 and higher Jobseeker's payments for the initial three months. Pay rises will push more workers into the 40% tax rate.

Read at Irish Independent