Whitaker Institute member Stephen McNena, of the Performance Management Cluster, has written a new article for RTÉ Brainstorm ahead of Budget 2023. The piece looks why new interest rates should be introduced.
Why Paschal Donohoe should introduce new income tax rates
Will Minister for Finance Paschal Donohoe be talking about new tax rates this week?
Analysis: the Irish tax system is highly progressive and low earners pay zero or little income tax, but the rates rise very quickly
One topic in the news in advance of Budget 2023 is if there is a need for a third income tax rate. Reports indicate that the Government has considered a new “middle” tax rate of 30% inbetween the existing 20% and 40% rates. The current income tax regime means that workers earning over €36,800 face a direct tax rate of 48.5% on any income earned above this cut-off point. This is a high tax rate on a modest income so adding a third tax rate would increase the entry point to the top income tax rate. Continue reading…