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Updated: 4.20 pm
FINANCE MINISTER MICHAEL Noonan has committed to easing the tax burden over the next two budgets.
Noonan said it was “a priority of the government” to raise the figure at which a person pays the higher level of income tax, 40 per cent, from €32,800.
“Over the next two budgets we will do that,” Noonan stated this morning.
However, it seems consensus within the government has not yet been reached on the issue.
Speaking at his party’s election launch in Dublin this afternoon, Labour leader Eamon Gilmore said it was “too early” to speculate on tax breaks.
“I’ve said before that as financial circumstances permit, that we would all hope to relieve the burden of taxation on hard-pressed families,” Gilmore stated.
But, you know – this is the Month of May. The 2015 Budget won’t be determined until October. And I think it’s too early to be speculating about what may or may not be in this year’s Budget, or next year’s.
This is the second time this week the coalition parties appear to be at odds with each other over pressing issues, following the failure to agree on water charges.
Noonan made his comments at Fine Gael’s local election campaign launch today.
A number of promises were made at the launch, including the commitment that any Fine Gael councillors elected this month would vote to cut the Local Property Tax rate “where circumstances allow”.
Taoiseach Enda Kenny said that Fine Gael “can be trusted to manage your local government finances and keep your Local Property Tax rate low”.
Fine Gael candidates will support hard-pressed households and families. Fine Gael councillors will not vote for an increase in the Local Property Tax rate and will cut the rate where circumstances allow.
“In the last election, Fine Gael promised to stop any further increases in income taxes on working families that were planned by Fianna Fáil. In government, we delivered on that promise.,” Kenny added.
Fine Gael is fielding 468 candidates across the country in the local elections on 23 May. Some 106 of these candidates are women and 10 per cent are under 35 years of age.
In a bid to stimulate job creation, Kenny said the government would increase funding to Local Enterprise Offices by 20 per cent and noted that Fine Gael councillors “will ensure that there will be no increase in commercial rates and will reduce rates where possible”.
He also said that proceeds from the sale of social housing to tenants would be reinvested in new social housing, noting this would “free up resources for new investment in parks, playgrounds and other local facilities so that all the community can benefit”.
“At national level, we have put the country on the road to recovery. We are asking the people to give our local candidates the opportunity to make recovery local,” Kenny added.
Noonan stated that 5,000 jobs were being created every month and said he hoped that many of the emigrants who left Ireland in search of work would come home as “the economy is strong enough now to give them jobs”.
He noted that “the economy underpins everything” and while the recovery was not complete, the country had come a long way following much “sacrifice”.
Noonan added that tax receipts for April 2014 are up 9 per cent from the same month in 2013, including 6.5% on income tax.
Kenny praised Environment Minister Phil Hogan for overseeing “the most radical changes in local government in the history of the State”.
Following on from this month’s election, the number of councillors will be reduced by 40 per cent to less than 1,000, while the number of councils will decrease from 118 to 31.
Hogan said the new “streamlined” system would “strengthen local democracy” and eradicate the “duplication and inefficiency” caused by the current system.
Children’s Minister Frances Fitzgerald said this election would “usher in a new kind of councillor”. She encouraged local candidates to back new guidelines on restricting the opening hours of takeaways located nearby schools and youth centres.
TD Eoghan Murphy chaired the event. He told candidates they had “shown courage” by putting themselves forward.
Now is your chance to go out and do something special, do something for Fine Gael … A lot will be asked of you.
First published: 1.38 pm
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FF brought in the USC on a temp basis, FG/LAB are making it permanent, lets start with removing this burden
Taoiseach Enda Kenny said that Fine Gael “can be trusted to manage your local government finances and keep your Local Property Tax rate low”. Now that is funny I never knew Kenny had a sense of humour. Must be a election on soon is there Enda?
USC brought half the population that paid no income tax into the system.
Fg must be really worried about 23th may
The lower tax rate is actually 27%, higher tax rate 48%. Let’s dispense with the bullish*t Noonan and call the USC what it really is. Lordamercy. Every raise I get in work is worth f-all after the government have taken their cut. It should be 20% up to €75k and 40% above that. If you want to keep banging on about other EU countries having water and home charges etc then you should be taking into account their income tax rates too.
Enda also said that I was unjust to tax somebody on their home !!!!
Reducing income tax while bringing in universal health insurance. This according to reports will ‘tax’ a family of 4 people 8k per year.
Get rid of USC now , I too thought is was only temporary , didn’t mind at first but now it’s taking its toll on me and everyone else
It’s a horrible horrible tax, takes a massive chunk out of my salary that wasn’t there previous to the collapse. If the Government think they will get credibility from lowering Income tax but persisting with this odious USC and then claiming “we’ve eased the burden in Income tax” then they are fools. It they want consumers to start spending to grow the economy then this Tax-by-Proxy USC must either be subsumed into Income Tax and be properly assessed as Income Tax is today or get rid of it.
“Noonan: Income tax burden will be eased next year”
He must be moving to Belfast.
FF had the tax burden even more heavily placed on the middle classes. Half of the country wasn’t paying tax at all and the top earners enjoyed a PRSI ceiling!
We will be Taxed for having a Shit soon . Unless ur not going to flush the toilet . Our country should not be like this as we pay TAX on Everything we buy
Name a country that doesn’t levy vat or sales tax.
It’s the amount of tax and what we will be taxed on . It will just go on and on until they bleed us dry . I’m damp at the moment
Must be an election coming..
Good news. The working man and woman who have borne the brunt of this crisis need a break badly…maybe get rid of that Dick Turpin (USC) as well while you are at it…
Kris the USC is here for good too much of a cash cow, no party will remove it maybe rename it but that will be all.
This will have minimal impact on the Local and European, but will on the next General Election.
If taxes are dropped in December and first see the change in their January pay packets, it would be ideal if the Government were looking at an election in the latter half of 2016.
April is the maximum they can push out an election in 2016 if they last the full term, which looks likely but who knows with Labour.
Apologies.
I meant 2015.
So cuts in December 2014 and election in August/September 2015.
Chris no the real giveaway budget will be October 2015, these nuggets being suggested today is to help party candidates across the line in the locals and Euro elections.
There has to be an election by February 2016. Money given away in next year’s budget will scarcely have arrived in people’s pockets at that stage. There’s a lag between people getting extra money and actually adapting to their new circumstances and feeling richer.
Chris do you think Enda will hold an election in Feb 2016, potentially missing being in government during the 100th anniversary of the Easter rising.
The Dail can only sit for 5 years before an election is required.
I’m not sure if that 5 years starts from 25 February (when the last election was) or 9th March (when the 31st Dail first sat). Either way it’s short of the Easter Rising anniversary.
I’m not sure FG care all that much about the Easter Rising anniversary anyway. Given their background, 100 years of official, recognized Independence in December 1922 is a more significant event.
I fear you are correct Norman with your comment….
Only the removal of USC will be acceptable, no less!
Hear hear Rob!
Won’t happen Rob, but you can ask GE candidates their position on it when the time comes.
Another lie. Trying to make people feel safe under them and next year will say (we only said its possible)
Then wipe everyone out with increases rather than lowering it.
So reduce income tax , but introduce property tax and water charge/tax , so no change or probably still a decrease in income for most people. Were not stupid !!
*We’re. You pretty much asked for that!
As a PAYE income tax payer, I’m quite happy for water and property taxes to offset the reduction in income tax.
As in fact are most of the PAYE income tax payers I know.
So Bob water and property tax to negate any reduction in income tax and you’re happy with that? Really?
Liam don’t forget the health tax on the way. Widening tax band after 32800 is only good if you earn over that.
Norman – yes because it means not just PAYE paying for everything.
Also, I am in favour of ring-fenced tax raising and spending (which is what the water and property taxes are).
Bob it does still mean PAYE paying for everything, those on social welfare will get concessions as will the very low paid.What do you think Gilmore is at already with the water charges other than trying to save his ass.
Agree with you Bob, widening the tax base and intoducing propery taxes and water charges was the right thing to do. One of the reasons why we got into a big mess is that Bertie cut income taxes and subsidesed those cuts with taxes (on borrowed money) from property transactions. When the property transactions dried up guess what happened?
Now that’s not to say that the last couple of governments have done a good job of making these changes but the principle of these changes is certainly correct.
Norman, there are a lot of people left when you exclude PAYE and those on social welfare.
Bob so who are the people that are left that don’t pay tax?
Self-employed and pensioners for a start.
Bob btw my property tax is €230 the little PAYE allowance than Joan cut was €250 same for my wife, the water charge is looking like €240.Grand total €970 per annum I don’t see FG or their buddies Labour cutting my families tax bill any other than maybe a €10 a week do you?
Norman – you’re not that stupid. If it wasn’t for the property and water taxes, the Government would have increase taxes on workers even more. Because everyone is now paying, it costs us PAYE workers less.
I am classed as self employed (owner director) and pay tax through the PAYE system. Don’t cast us all the same! I have to pay more tax as I am not entitled to the PAYE tax credit!
They have PRSI,PAYE,USC,EE PENS,TAX,VAT… So many different names when we all know goes to the same place
Yeah and Bono :-)
Go back to the Cumann Bob and tell them your little idea isn’t a runner
Bob since when did the self employed and pensioners not pay tax, are you serious please tell me you’re joking.
So if it wasn’t for the property tax and water tax you’d pay more tax.What type of mad logic is that Bob? Is that the new spin being put forward by Labour supporters.
It’s fairly simple Norman, the more universal taxes there are (i.e. that are raised outside of PAYE), the less tax I have to pay overall.
Recent history shows us Fine Gael can be trusted to lie for votes and screw everyone over once elected
All lies. Do not be fooled. Now is the time to act. Remove these parasites from power at every opportunity.
I’m still not voting for them.
You would want to be some fool to believe that sh it
From fg
I definitely don’t believe a word, from either side of the Dáil, let alone from the party I stupidly voted for. I take these sound bytes with a pinch of salt.
All lies. They have lied since even before they got into power. They cannot and must not be trusted to run the finances of the Republic any more.
Fool me once, shame on you, fool me twice, shame on me.
Nah ah, no way am I falling for that one.
“Where circumstances allow” LOL. That gives them a nice out. They usually just lie anyway so wrent bother pretending?
“Noonan said it was “a priority of the government” to raise the figure at which a person pays the higher level of income tax, 40 per cent, from €32,800″
So anyone under €32K won’t be getting relief?
FG has always represented the rich, is someone under €32,000 a year rich?
Apparently anyone with that salary is heading for uber-rich !
You got it in one !
Since when is someone earning 35,000 rich ? It’s the most average of wages and they are the most screwed over. The lower middle class are the ones who took most of the brunt, the working poor are worse off than anyone else; they earn to much for welfare but not enough to “invest” to write off tax
People under 32k only pay 22% tax. Someone on 28k a year takes home more than someone on 32k. This is wrong
Jay I think you missed my intention in my post.Only the deluded believes that FG care about anyone other than the rich.
Look how well DOB does when FG are in government.Phone licence last time, water meters this time and more besides.Who knows what if there is a next time.
Rob sure you got your maths right there, bud?
The higher rate is only on the money above the limit.
Rob only 22% under €32 k I really hope you’re not an accountant.
“People under 32k only pay 22% tax. Someone on 28k a year takes home more than someone on 32k. This is wrong”
You are wrong!
For starters the higher rate of tax doesn’t kick in until € 32,800!
More false promises from fg there just looking for people’s votes I don’t believe anything out of the mouths anymore
Watch that final phrase ” when circumstances permit ” ! That means NEVER !! I presume no one is stupid to believe any election promises !!!!
Pre- election b****x. Tired of empty promises. Paying money out everytime I breathe and yet where I live the roads are in ribbons, the water is near undrinkable, the facilities for children are 3rd world at best. And yet keep getting the drops through letter boxes promising to sort everything. AMA!!
Very dramatic!
All the people complaining about Noonan and FG/Lab…you know what to do in 3 weeks!!!!!!!
Tax burden eased……yeah right !!
“Noonan Nonsense”
We can see right through you Mr Noonan.
More lies from his rat mouth . must not be fooled again , must not be fooled again ( keep repeating till sunk in )
lies damn lies and spin yes its that time again election time and its time for more false promises and lies from enda
Maybe they should tackle the USC first and I still see this as just a stunt prior to election. If it happens it will be good news but it’s too little too late and a lot more has to be done. I am meeting many people on the doors both workers and the unemployed in Dublin who are really hurting. The stealth taxes are really hitting people. Today the new carbon tax comes in and will hit people trying to keep their homes warm for winter.
Remember this carbon tax was brought in by the Greens, if anyone has one of these muppets dont give them anything at all
While raising the higher rate tax band is positive thing it is not the first thing that should be done. Many low income workers will see no benefit. The first thing that should be done is reduce the burden of USC.
I can’t remember what happened last time we had such excellent pre election promises.
……….oh wait…..
Oh yeah.
Meanwhile sick children & children with disabilities are left without services?
Almost forgot,how rude of me……Good afternoon all you FG/Lab trolls….counting the days till the elections? Bet you cant wait… ? NEITHER CAN WE..you sad sad tools
Here we go !!!!! Blind man on a galloping horse saw this coming !!!!
Sure don’t ya say stuff like that just before an election….
So today if a worker on an average salary gets a windfall or bonus in work as a reward for their contribution and hard work they hand over 52% of it immediately to revenue? How can this be justified? when corporations are getting off almost scott free. The poor tax payer stuck in the middle is literally being robbed blind. Who could blame our young people for leaving?
I know of someone today who is in this situation and in one fell swoop will hand out over 20,000 euro to the taxman even though he has only recently entered the higher tax bracket. where is the fairness in this? I think we are all too compliant but I sense that the tipping point in all this austerity has been reached by the same working people paying for everything.
Never mind a windfall or bonus, if you do any overtime you are nailed.
Someone handing over €20k to the Revenue in income tax would have to be earning €60k a year. Which is far in excess what most people in this country earn. Would you go away with your “where’s the fairness”.
Well, the 40 K left after paying tax is nothing when one has to pay mortgage, childcare, all bills, petrol, doctor: in other words, for everything. They might be left with an overdraft end of month.
Stephen, I am talking about a one off scenario here. This person is earning under the industrial average wage yet when he gets a bit of a break gets absolutely screwed by revenue. His starting salary was really Low so this kind of made up for it…..until the tax and prsi and USC kicked in. How can anyone pull themselves up in this country with such a punitive PAYE system?
The burden of the USC should cut first as an insrease in the tax band only helps workers above 32,800.
The USC was ment to be a temp charge in the first.
The mention of hogans is enough to turn me of politics
More election s?ite
just wondering is there Elections comming??????? They got me once they wont get me a Snd time,
Vote Independet, Vote Direct Democracy . Voting SinnFein won’t change anything. SinnFein are making promises they can’t keep. SF implement austerity in Ni.
*Independent
Come next year you ll hear sorry folks change of plans fg lab don’t keep promises made in the run up to elections
“Not another red cent “
What a bunch of shysters the present government is do they think we are stupid? They eill be in for a shock soon!
Is there an election soon??????
They filled us with lies the last time don’t be fooled twice
How can two parties be in government when they can’t agree on anything
Fool me twice shame on me..
BULLS*IT!
They’re doing things arseways completely. They shuld’ve slashed taxes and the minimum wage years ago we’d be doing fine by now with far far higher employment and consumption and would be in a better position to pay of europes basterd debt that we shouldn’t owe
USC has to be he first th
Thing to go!!
ing to go
Noonan the laughing Buddha!
If that f##kin pension levy and USC doesn’t go soon I’m gonna lose it. I’m sick of living day to day being piss poor and watching others creaming it. The government needs to look after the working class ie nurses firemen office workers bin men police etc instead of protecting lifelong spongers and the very wealthy.
Clearly the objective is to provide most benefit to the middle and above income earners… Those at the bottom will continue to suffer.
Don’t know about tax cuts but there will be a lot less FG and Lab Councillors after the next election.
Another sop to the rich and the US chambers of commerce. This type of tax reduction will only help the better off. Reduce USC or increase the credits. Truth is that the lower paid and people depending on social services will fund this tax cut. What is needed is wage increases across the economy.
Fine Gael have shown their true colours and should never be allowed into Govt again.
Enda Kenny is one of the most incompetent Taoiseach’s we’ve ever had.
To be fair…bertie aherne was worse. But we are talking a barrel of bad apples to choose from.
Wont make a difference your still going to be got rid off
Lets go and fly some kites !
I smell bullshit !!
Thanks Michael your a real buddy
There seems to be some confusion about income tax rates.
From my understanding, the standard rate (20%) is up to 32.8K for a single person and 41.8K for a married couple.
The higher rate of 41% is charged on all sums IN EXCESS of the 32.8K only. On top is added, the salary levy, PRSI and USC have to be added on.
I think an increase in the threshold for the higher income tax rate and more especially a reduced in the dreaded USC might be a start!
I’d prefer to see better services than tax cuts. Won’t happen though.
Oh, and a reduction in all these stealth (and brazen) taxes we’re being loaded with.
Mary, it will never happen. No government on the planet is capable of spending your money better than you can.
Property tax would be reduced if everyone paid inc corporation houses and county council houses.
Lies lies lies lies lies lies lies lies lies
More lies and spin. Neither you or your crappy party are fooling anybody. Can we have some chocolate biscuits too?
Bring back Harney and the PD’S
We still have to balance our books at the end of the day so unless the government make more expenditure cuts they won’t be making any significant tax reductions.
Cheers lads!
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