Boost in take-home pay this New Year due to Budget 2015 tax cuts
Fine Gael TD for Dublin Fingal, Alan Farrell has said that the launch of Fine Gael’s online tax calculator will allow everybody in Dublin Fingal to see how much of a boost they can expect in their pay packets this New Year which may be a help in budgeting for Christmas.
“I would encourage everybody in Dublin Fingal to utilise the online tax calculator available on the Fine Gael website to see exactly how much they will benefit from the tax cuts implemented in Budget 2015. While money is often tight for Christmas, the online tax calculator will allow people to work out how much of a boost they can expect in their pay packets in the New Year and this may assist them with tackling their expenses over the festive period.
- A Single PAYE worker on the minimum wage of €17,542 will get €173 back.
- An average industrial wage PAYE worker on €35,000 will get €396 back.
- A working family (eg. a guard and a nurse) with two children who earn €55,000 and €50,000 respectively will get €1,204 back.
- A PAYE worker on €71,000 will get €747 back.
- A PAYE worker on €140,000 will get €747 back.
“As part of the Government’s tax cuts, the threshold at which the USC becomes payable was increased and, from January, 80,000 people will no longer be subject to this charge. This builds upon the 330,000 people who were removed from the USC bands in 2012. From January, all employed people and self-employed people who pay tax can expect to have a little more cash in their pockets. While everybody who works will benefit from the Budget 2015 tax cuts, low and middle income workers will benefit proportionally more as the Government has prioritised reducing the high rates of tax being paid on very modest incomes.
“High rates of tax are counterproductive to job creation and they work against attracting people back to work. In fact, before Budget 2015, somebody who earned €32,800 annually entered the 52% rate of tax which is unsustainable in terms of further incentivising job creation.
“Everybody can see the positive impact Budget 2015 will have on their wallets by utilising Fine Gael’s online tax calculator. Thanks to the sacrifices made by the Irish people during the economic crisis, this Government has been able to reduce the tax burden placed upon workers for 2015. In addition to this, child benefit has been increased by €5 per child. I am pleased that the Taoiseach has stated that our tax cuts will be repeated again in 2016 and 2017 and this should lead to the creation of another 15,000 jobs in the country.”
Note to Editors:
The software for the tax calculator is provided by KPMG and hosted on the Fine Gael website.
Everybody paying income tax or USC or both will see increases in take home pay
A married couple with two children, (one who works at home and one who works in the public sector earning €59,300 per annum) will get €598 back.
A married couple with four children under 12 (one who works in the private sector with income of €70,000 and one who works in the home) will get €896 back.
A single parent who is the primary carer of their child and is employed full time on €40,000 per annum will get €466 back.
A married couple with three children under 10 where the family holds a full medical card (One who works in the home and one who works full-time earning €35,000 per annum) will get €238 back.
A retired couple (one of whom has a Contributory State Pension (€22,703), which includes an adult dependent allowance in respect of the other and an occupational pension of €50,000 per annum) will get €798 back.
A single person with no children, who is self-employed, with an income of €120,000 per annum and pays a pension contribution of 5% of their gross income, will get €687 back.