Income tax changes worth more than a few hundred euro, Tánaiste says
Simon Harris also said that he was not going to give away the tax package ahead of the Budget.
The Budget can make a “significant impact” for middle-income earners, the Tánaiste has said, after income tax measures were described by a Fianna Fáil minister as amounting to a “few hundred euro”.
The summer economic statement outlined that there would be a tax package of 1.5 billion euro in new measures in the October 6 Budget – largely relating to income tax.
The Tánaiste told reporters at his Fine Gael party think-in in Gorey, Co Wexford, that income tax changes would result in “more than” a few hundred euro back for middle-income earners.
Earlier in the week at the Fianna Fáil think-in, Public Expenditure Minister Jack Chambers said workers could expect “a few hundred euro” after income tax changes in the Budget – describing the scope for such measures as “modest”.
He told reporters: “It’ll be a modest income tax package when it amounts to 1.5 billion euro in total, and that’s, I think, a signal to workers that over the next series of budgets, we want to alleviate the tax burden, but to do so in a in a progressive and sustainable way.
“I’m very clear that it is modest and the adjustments will amount to, you know, a few hundred euro, depending on your income, which I know, on an annualised basis, will be perceived as modest amongst the public.”
The Fianna Fáil deputy leader said it may “take a series of budgets for people to see the real improvement in terms of keeping more of their take-home pay”, adding: “But that’s the honest position that I’m giving in the context of the budget.”
Asked if the “few hundred euro” remark was accurate, Mr Harris said: “I’m not going to give away the tax package here today, right? But I believe we can make a significant impact cumulatively on the life of a middle-income earner.”
The Finance Minister added: “I think for many middle-income workers it will be more than that, but let’s finalise the detail.”
Mr Harris said “the direction of travel” was to increase bands and credits, but added: “I also want to have other conversations around costs more generally, childcare costs, energy costs.”