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Workers paying more tax than 10 years ago, says Tax Institute

Workers paying more tax than 10 years ago, says Tax Institute

Workers in Ireland are paying more tax than they did 10 years ago when the economy crashed despite repeated Government pledges to lower the burden, the Irish Tax Institute has claimed.

In a pre-budget report, the institute said workers across all income levels were paying more personal tax (income tax, universal social charge and PRSI combined) despite a programme of reductions over the past seven years.

These include three increases to the USC entry point, 11 USC rate reductions, six USC band widenings, two increases in the entry point into the top rate of income tax, currently at 40 per cent, and a one percentage point decrease in that top rate.

The institute’s report showed the net pay of single-income earners on €35,000 a year is down 3 per cent or €964 compared with 2008, while those on €120,000 are down 9 per cent or €6,679.

Families on €35,000 with two incomes, meanwhile, are 3 per cent or €1,928 worse off, while families with two incomes totalling €75,000 take home 5 per cent less, or €5,590.