Fine Gael intent on further reducing taxes and making sure that work pays

• Permanent cost of living measures for squeezed workers
• Support for small businesses with cost base and energy bills as well as new permanent VAT rate for hospitality & retail

Fine Gael has set out its plans to further reduce income taxes on workers and to ensure that people are better off working.

Fine Gael Deputy Leader Helen McEntee and Ministers Paschal Donohoe and Peter Burke today (Saturday) outlined the Party’s plans to continue to drive down the tax burden on working people, to ensure that people keep more of their hard earned money and a set of measures to permanently assist with the cost of living.

Minister for Public Expenditure, NDP and Reform Paschal Donohoe said: “The economy is in a good place, we have a record 2.7 million people at work, with 900,000 jobs having been created since Fine Gael entered Government, and a plan to create 300,000 more over the lifetime of the next Government, if Fine Gael is returned to Office.

“We are always mindful of the important role taxation plays in fuelling society, boosting the economy and influencing people’s standard of living. That is why we have consistently reduced income tax over the last decade. And why we will continue to do so, if given the chance by the electorate. Today, we are setting out our plan to further reduce taxes to allow people to keep more of their hard-earned income, to ensure that nobody on the average wage pays the higher rate of tax, that welfare traps are eradicated, and that self-employed people are treated in a fair way.”

We will make work pay by:

• Raising the point at which workers enter the higher tax band by at least €2,000 each year, ensuring that those earning €54,000 will not be subject to the higher rate of income tax;
• Increasing the Personal, Employee, and Earned Income Credits by €75 annually, resulting in €750 back for most taxpayers by 2030;
• Raising the entry threshold for the 3% USC band from €27,382 to €40,000, and the entry threshold for the 8% USC band from €70,044 to €75,000.

Deputy Party Leader Helen McEntee said: “Fine Gael has a proven track record in creating jobs. With a job now there for everyone who wants one, and female employment now at a record high, we are in a much better place than we were when Fine Gael first entered Government after the crash. However the country has been going through a cost of living crisis. That is why, over successive budgets, we have focused on bringing down the cost of living and adopted policies to help make life a little bit easier for people. We know that workers and working families are still feeling the squeeze and we are responding with sensible, permanent measures to help in the here and now, and point towards a more secure future.”

We will do this by:

• Capping childcare costs at €200 per month per child or €600 per family with more than three children;
• Extending free hot school meals to all school and introducing an August double child benefit ahead of back-to-school time;
• Abolishing college fees and increasing access to SUSI grants;
• Extending free GP care to under 18s, abolishing prescription charges and cutting the cost of medicine to €50 a month;

• Raising the weekly State Pension to at least €350 over the next term of Government;
• Abolishing the Carer’s Allowance means test and increasing the Annual Carer’s Support Grant to €2,500.
• Supporting households with their energy bills by following energy tax credits in November and January with a permanent domestic energy VAT rebate in 2025.

Minister for Enterprise, Trade and Employment Peter Burke, said: “Backing business and driving down costs has always been a priority of Fine Gael’s. Our three point plan to support our SMEs will see a permanent lower VAT rate of 11% introduced, a PRSI rebate for smaller businesses and further energy supports delivered in the time ahead. SMEs are the backbone of the economy; creating valuable jobs and keeping our economy moving. Employment in companies supported by Enterprise Ireland is now at its highest ever level at over 225,000, with a good geographical spread and over two thirds of the new jobs created outside the Dublin region. Taking the chance and opening your own business takes real bravery. That is why we have put the self-employed at the heart of what we are doing to ensure that they are treated in a fair and equitable way and that they too are rewarded for their efforts.”

We will continue to support business and workers by:

• Abolishing the USC surcharge on self-employed income to support those who take risks to build their businesses;
• Aligning any increases in personal income tax credits to ensure self-employed individuals receive the same benefits as employees;

• Compiling recommendations to promote tax reliefs as a method for supporting health and wellbeing activities such as gym memberships;
• Introducing Pay-Related Parents Benefit modelled on the Parents Benefit, and seek to extend this to other forms of leave over time.

Minister McEntee concluded by saying: “Reducing the tax burden on workers has always been core to Fine Gael’s belief. Having a job gives people a sense of purpose; a reason to get up and out into the world. We have had great success, by any measure, in creating the environment in which businesses can thrive and good, high-quality jobs are created. Continuing to incentivise work and reduce the tax burden, especially as pay rates and incomes grow, will ensure that work pays and our economy remains robust now and in the years ahead”.