Taoiseach Enda Kenny has said the upcoming budget will reduce the “too heavy” tax burden on middle and low income workers.
He indicated earners in that category would no longer pay a 52 per cent rate after Minister for Finance Michael Noonan announces the Budget on October 14th.
“The tax burden of 52 per cent is too heavy in respect of middle and low income workers. Starting with this budget we’ll begin to reduce that burden over the next number of budgets,” Mr Kenny said.
“The prize is the future. So what we want to do with the forthcoming budget and the one after that is to strengthen that future, to strengthen the growth in our economy, to fortify it against falling backwards like what happened previously,” he said.
The 52 per cent rate incorporates the universal social charge (USC), pay-related social insurance (PRSI) and both the standard and higher income tax rates.
Next month’s budget would begin to “relieve that burden” on low and middle income workers, he added.
Turning to the latest Central Statistics Office (CSO) figures, which show the economy is growing at its fastest rate in seven years, Mr Kenny said: “These figures are encouraging but I’m not one to get carried away by any of that.”
