FG’s fair tax plan will see hard pressed workers keeping more of their own money – Donohoe

Standard Rate Cut Off Point being raised from €35,300 to €50,000 over lifetime of next Government

The €777 effective tax hike on ordinary workers from Fianna Fáil

Those earning less that €20,000 will not be levied with USC

Fianna Fáil’s failure to take into account the projected wage increases over the lifetime over the next government will result in an effective tax hike on ordinary workers.

Wages will increase by 19% according to projections but Fianna Fáil’s tax band increase will not keep pace with this wage growth. This means that workers are facing a tax hike in real terms under Fianna Fáil. A worker earning the average wage of €47,596 will pay €777 more in tax than he or she should.

The Minister for Finance, Paschal Donohoe, said that Fine Gael’s fairer taxes plan will put more money back in the pockets of hard-working taxpayers.

“Fine Gael will always prioritise the improvement of living standards of workers and their families.

“That’s why we will ensure that nobody has to pay the top rate of tax until they earn €50,000 a year and that anyone earning less that €20,000 will not be levied with USC. It is simply wrong that a worker on €39,000, €42,000 or the average wage of €47,596 should be paying the higher rate of tax.

“Fianna Fáil, instead, believes that workers on the average wage should have their taxes hiked.

“As Fianna Fáil has failed to take projected wage increases into account, they are actually increasing taxes on ordinary workers.

“Under Fianna Fáil, an ordinary worker currently earning €47,500 will pay €777 more in tax than he or she should.

“In contrast, under Fine Gael the tax band (or standard rate cut off point) is increasing to €50,000 so there will be no tax increase for middle income earners.

“Fianna Fáil betrayed taxpayers when they crashed the economy. Now they are betraying taxpayers again by effectively hiking taxes. Fine Gael in contrast, will let middle income earners keep more of their money.”

Fine Gael candidate in Longford Westmeath, Peter Burke, added that Sinn Fein’s manifesto would create huge risks to our successful economic model built on inward investment and trade.

“Sinn Fein thinks that it can carry off the three card trick of making Ireland massively less attractive for international companies, while at the same time basing its spending giveaways on gaining ever-increasing revenue from those same companies.

“Also, buried in their manifesto is a hidden proposal that would cut the tax relief on pension contributions from 40% to the standard rate of 20% on what they describe as ‘gold-plated pensions’.

“It will reduce the size of the relatively modest pensions that ordinary people would expect to enjoy in retirement and prevent people from saving more of their hard-earned money in the first place.”