What do people think of this new ‘middle’ income tax rate of 30%? What is middle income these days?

21 comments
  1. Would make sense. There’s a sharp increase in tax after you hit a certain salary level. If you’re hovering around the level things like overtime or bonii become counter productive.

  2. The standard rate cut-off point in Budget 2005 was about 30k. Adjusting for inflation since then it should be at about €40k (assuming 1.2% compounding for 22 years), but it’s actually at €36,800 for this year, and that’s without mentioning USC being introduced in the meantime. A move to reassess what is actually a high earner salary now and smooth out the transition from standard to the high rate is long overdue, while also being more progressive.

  3. Got to love Leo just floating ideas around, just heard a reporter on late debate that the finance department where shocked

  4. I’ll believe it when I see it. Varadkar and Fine Gael have been promising significant taxation reform since the 2016 General Election. They haven’t done an iota to bring it about. Talk is cheap.

  5. Hopefully that’s the case. I’m assuming here that you’d currently nearly break even or possibly make more if you were on 36k vs 40k a year. ( Too lazy to do the math), but wouldn’t be surprised if that was the case.

  6. They don’t need another more complicated tax rate just move the point where the higher rate kicks in to €50,000 and reduce VAT to 20% for starters

  7. Noone is addressing the elephant in the room which is: what are we getting for the shitload of taxes we pay?

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