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budget 2015

Where does all your tax money go?

With the Budget just one day away, we take a look at where your tax money is currently being spent.

THE BUDGET IS now just one sleep away…and tax cuts look set to be on the agenda.

The Health Minister Leo Varadkar let it slip last month that it would mean an “extra fiver or tenner” in your weekly pay packet.

So with all this talk of tax cuts and how the government is going to do it - we’re taking a look at exactly how much you’re paying right now and where it’s going.

PublicPolicy.ie gives the tax calculation based on a single PAYE worker in the private sector.

It uses data from the Revised Estimates, which is the most up-to-date source of Departmental spending.

A worker earning A minimum wage of €18,000 per year

  • Someone earning this amount will see €578.80 go in taxes
  • Servicing Ireland’s debt will take €75.60 of their taxes
  • Education will take €83.20
  • The Garda Siochána will take €12.75

A global survey of 214 countries found that Ireland has the 7th highest minimum wage pay at just over €18,000 per annum.

Minimum

Someone earning €36,000 a year

  • Someone earning this amount will see €7,850.80 go in taxes
  • Servicing Ireland’s debt will take €1,025.47 of their taxes
  • Education will take €1,128.47
  • The Garda Siochana will take €172.95

The average industrial wage is €36,000. There’s talk that the government could increase the income tax band by €1,000 so that workers begin to pay the 52% rate on income over €33,800 and not €32,800 as they currently do.

Average

Someone earning €55,000 a year

  • Someone earning this amount will see €17,730.80 go in taxes
  • Servicing Ireland’s debt will take €2,316.00
  • Education will take €2,548.63
  • The Garda Siochana will take €390.61

Higher

Someone earning €100,000 a year

  • Someone earning this amount will pay €41,130 in taxes
  • Servicing Ireland’s debt will take €5,372.51 of their taxes
  • Education will take €5,912.14
  • The Garda Siochana will take €906.11

Money Bags

Regardless of how much you earn – Social Programmes is where the majority of your tax money is spent. Here’s how much money goes on the biggest tax – for the four examples of earnings we used:

  • €18,000 – €191.55
  • €36,000 – €2,598.22
  • €55,000 – €5,868.01
  • €100,00 – €13,612.24

And here’s the breakdown of where that money goes:

Pie Chart for CR

Click here to view a larger version.

So that’s how much you’re paying now and tomorrow will reveal exactly where the tax cuts will be made, how much they will be and who’s going to benefit the most.

Originally published 6.44pm

Read: The government says they’ll cut our taxes in the Budget, but how are they going to do it?>

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