What About Next Year’s Budget, Karl?

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CrystalBall

Budget 2016??

Some crystal balling.

Taoiseach Enda Kenny has said the top tax rate on middle-income families will be dropped to a maximum of 50 per cent in 12 months’ time, all but confirming plans cut the upper income tax rate to 39 per cent in the next budget.

Mr Kenny remarks, in a Dáil speech this afternoon, are also seen as a clear indication that the new upper USC rate of 8 per cent on income exceeding €70,000 would be increased to 9 per cent when the top income tax rate is cut again.

This also implies that the two lower USC rates would each be cut by a further half percentage point to 1 per cent and 3 per cent respectively.

Want to see what that will all mean to you (should it all come to pass)?

We have Karl’s Budget 2016 calculator prepared already!

Click HERE

Taoiseach pledges to cut income tax rate again in next budget (irish Times)

28 thoughts on “What About Next Year’s Budget, Karl?

    1. Mulch

      ctrl alt 4. Either that or we will have rejoined the UK by next election? Pretty sure that wouldn’t go down well with voters.

  1. Mr. T.

    At the very least, we should have the equivalent of the water charges cut from our taxes or else it’s double taxation.

    1. Karl Monaghan

      You’re not getting double taxed. Water is no longer paid out of central taxation.

      Also the tax drops combined with the water charges tax relief already amount to more than what the government was shelling out for your water.

      1. Spartacus

        That´s the tax relief for people who earn enough to pay tax, yes? Not for those who don´t, or for those on very low incomes (pensions, unemployment, diasbility) who don´t have the spare cash to pay in any event.

        1. droid

          And, as is blatantly obvious, the tax changes disproportionately benefit the wealthy, so whilst tax cuts may amount to more than the govt is taking in from water charges, it doesn’t follow that you are not being double taxed – ie, paying approximately the same amount of tax that you paid previously, AND paying a second charge for water – especially if you are on low income or welfare.

  2. JunkFace

    The Higher tax rate ceiling for Income Tax should be doubled from €32K to €64K. That’s IF the Government want to stop the Brain drain from Ireland to the UK and Canada. They’re stifling small and medium enterprises and sole traders.

    This budget was pants!

    1. diddy

      nice idea if you had a razor wired compound with a water supply and on site doctor to live in.. otherwise no

    2. Mikier

      Agree. Think it is 40% in the UK from around 32k to 150K before you go up to 45%. The fact we were getting taxed 52% on a basic wage is a joke, have seen so many head to the UK who had jobs here.

  3. droid

    Obviously decided there’s no point in going after potential SF/Independent voters, instead just focus on keeping FG’s rump happy at the expense of Labour. An election costing strategy IMO.

  4. Jack

    Am I missing something here?

    If 1% is taken from PAYE rate and added to USC, doesn’t that leave us quids out?

    Instead of Revenue taking 1% of (taxable income – tax credits), they take an extra 1% of gross income (a larger value)?

  5. Chewbacca

    Was’nt the USC an emergency charge brought in post the banking crisis? Tax over 50% is beyond depressing. I am on the same salary as 2007.

    1. Karl Monaghan

      ’emergency’ and ‘temporary’ taxes should always be viewed as permanent until they’re actually abolished. It’s just a way of spinning them so they’re a tiny bit more palatable.

      1. Anne

        Take the opposite as the true meaning.

        Temporary means permanent when it’s coming from the Ministry Of Truth..

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