Michael Healy-Rae
Ceist:265. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter in relation to the squeezed middle (details supplied); and if he will make a statement on the matter. [49620/22]
Amharc ar fhreagraTuesday, 11 October 2022
Ceisteanna (265)
Freagraí scríofa
Budget 2023 included a significant personal tax package with an estimated cost next year of over €1.13 billion. The Standard Rate Cut-Off Point, which is the entry point for the higher rate of income tax, is being increased by €3,200 from €36,800 to €40,000 for a single individual (8.7% increase), with commensurate increases in the bands applying to married persons and persons in civil partnerships. The main personal tax credits (personal credit, employee tax credit and earned income credit) are also being increased by €75 from €1,700 to €1,775 (4.4% increase). The married tax credit is being increased by €150 from €3,400 to €3,550 (4.4% increase). The home carer tax credit is also being increased €100 from €1,600 to €1,700 (6.3% increase).
Furthermore, the 2% rate band ceiling for USC will also be increased in line with the increase in the national minimum wage to ensure that a full-time adult worker who benefits from the increase in the hourly minimum wage rate of €10.50 to €11.30 will remain outside the top rates of USC.
I will bring forward legislative amendments in Finance Bill 2022 to give effect to the above changes from 1 January 2023. The measures will apply to all taxpayers, including married couples, as appropriate to their individual circumstances and income levels.
In the absence of further information regarding the couple's personal situation, such as a breakdown of the individual earnings and how they choose to be treated for tax purposes (for example, joint assessment, separate assessment or single assessment), it is not possible to provide a definitive answer to the Deputy’s question from the perspective of the personal income tax system.
The Tax Policy Changes document published on my Department’s website contains distributional analysis and illustrative examples of the Budget 2023 tax measures - www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/
With regard to cost of living increases, the Government is acutely aware of the cost pressures currently facing households and businesses and has responded to help alleviate some of this burden. A Budget package of €6.9 billion was recently announced, as well €4.1 billion of one-off measures, which included, for example, the provision of energy credits for all households. This is in addition to €3 billion of measures that were implemented before the recent Budget.