Cutting tax for women

Madam, – At least there are some good recommendations for women workers in recent IMF policy documents

Madam, – At least there are some good recommendations for women workers in recent IMF policy documents. The IMF focuses on married women who are “second earners” as is the case for the majority of Irish married women.

Here couples file their tax returns under a joint family taxation policy. The IMF notes that in many countries including Ireland this policy can put an implicit tax on second earners as high as 70 per cent.

They recommend incentives towards second earners which combine tax incentives and better child care support to target and increase female participation. They say women should be allowed to file their tax returns separately. Of particular concern in Ireland is that many married women at most claim a PAYE allowance of €1,840 only and they (or more specifically their employers) have to pay tax on any amount over that. If proposed changes are made to the tax position of married women workers it might be best added to their PAYE allowance.

Alternatively, women should file their labour income separately and maximise their incomes and reduce the tax bill for themselves and their employers. The expected growth in the caring/personal services will requires changes in the way tax allowances are allocated to working wives. – Yours, etc,

EVELYN MAHON, FTCD,

School of Social Work and Social Policy,

Trinity College,

Dublin 2.