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Cash Money
Here's what all of the parties' general election promises mean for your wallet
Taxback.com’s calculator aims to show how the plans of the main parties will affect your take home pay.
HIGH-INCOME EARNERS COULD be more than €20,000 a year better off depending on who gets into government, according to an election calculator aimed at showing the financial impact of party promises.
Taxback.com has combed through all of the political manifestos released in recent weeks and produced a calculator that assesses what each of the different parties’ policies mean for you.
First, a couple of caveats. The calculator measures taxes on income, so it looks at potential changes in income tax, USC and PRSI.
It does not take potential changes such as the abolition of the water charges, which is advocated by several parties such as Sinn Féin and the Social Democrats, into account.
It also excludes the potential impact of a proposed wealth tax or other tax increases not directly related to income, such as a sugar tax.
Full term
The calculator works on the basis that the parties’ manifestos are implemented in full. Assuming that the government elected will serve a full term, the calculator measures the income tax position in five years’ time, if everything goes according to each party’s’ plans.
It is also based on the assumption that the base salary is for a single person with no dependents on their employment income. The calculations do not take into account any potential pay increases or wage inflation.
With all that said, let’s take a look at how much you stand to lose or gain. First of all, here is the take home pay for those earning €22,500. People on this income would theoretically see their income increase the most if Labour get its way while there would be no change under any variation of a Sinn Féin, Green Party or Social Democrat government.
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Those with a salary of €38,500 would get the most extra income from Renua, and would see a gain from any party except Sinn Féin, the Green Party or the Social Democrats.
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There are very noticeable gaps in theoretical tax home pay once you start getting up to higher incomes. Someone earning €70,000 a year would pocket almost €8,000 extra if Renua gets its way, more than twice the gain from any other party.
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There are only significant reductions in take home pay once you start getting near €100,000. Those lucky enough to be earning €120,000 would take home less under Sinn Féin and AAA-PBP but would stand to gain a staggering €22,282 from a Renua government.
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Taxback.com Senior Tax Manager Barry Flanagan said that most of the parties’ policies are clear, meaning that the calculator is “very accurate”. He added that Taxback.com is confident the calculator represents the parties well.
Read: Most people would give up tax cuts for greater spending on health services
Read: What is the ‘fiscal space’ and why does it matter?
