IRONICALLY, FOR A BUDGET that has been more eagerly awaited than almost any other in Irish history, we already know a reasonable amount of what’s to come in this afternoon’s Budget.
Unusually, we can already say for certain that there’s going to be €6bn in various adjustments – with €1.5bn in new taxes, and €4.5bn in spending cuts – introduced. And, thanks to the Four Year Plan, we can make fairly informed estimates of where they’re going to come from.
Here’s what we think is almost certain to be on the way.
This means a single person will start paying 41% in tax once they earn over €32,000, rather than the current cut-off point of €36,000.
This means that a typical single person will automatically be taxed by an extra €386 per annum.
Currently, you can get up to €70 per annum off your tax bill based on fees you pay to a trade union. They’ll be gone.
This means that your pension contributions will probably face a charge of between 4% and 9%.
At present a single person (under 55) gets a credit of up to €400 each year. Expect this to be reduced substantially, but not eliminated altogether just yet. The Four Year Plan suggests that it is being phased out over a number of years.
The standard rate and higher rate of tax are 20% and 41% respectively. There has being no indication that these will change. By not increasing the higher rate of tax, this means that the hardest hit are those earning approx €36,000 – the current point of the higher-rate income tax band.
Someone earning €100,000 per annum will have their take home pay reduced by the same amount as someone on €36,000.
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