Time to lower those expectations…

Middle-income families would lose €640 a year for each child if the Government decided to tax child benefit at current income tax rates, figures provided by the Department of Finance have disclosed.

The cut for families paying income tax at the higher rate of 41 per cent would be five times higher than the cut of €120 in yearly benefit per child announced in last month’s budget, if that measure were proceeded with by the Government.

It works out at a €55 cut in the monthly benefit for each child and would mean a family with three children would lose almost €2,000 in annual income to the household, or €166 a month.

Well, that’s a kick in the Pampers right there.

Taxing child benefit may cost families €640 a year (Harry McGee, Irish Times)

(SaskoLazarov/Photocall Ireland)