Monday, December 14, 2009

Ireland: Stealth Tax in Budget 2009/2010 to hit pay in 2010

The Sunday Times carries the following:

Stealth tax will hit pay in 2010-workers will suffer a reduction in earnings next year, writes Niall Brady

Taxpayers will pay more in income levies next year despite Brian Lenihan's assurances that there were no tax hikes in last week's budget. The increases ,overlooked in the post-budget analysis, mean for example, an extra levy of €247 on an income of €75,000 next year, €500 on earnings of €100,000, and €665 more on an income of €125,000.. The hidden taxes are an added blow to families,who will lose €84m in child benefit payments as a result of the budget, and for public servants,whose pay will be cut by more than €1billion in 2010... Jim Ryan, a tax partner at accountants Ernst and Young said:"To say that taxpayers will pay the same amount in 2010 as this year is incorrect. They wont notice it happening because their pay cheques in January will be the same as in December. Take-home pay for the year as a whole,though,will be lower than in 2009 because of an average increase of 15% in the income levy. ...

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