Sir, – Further to the letter by Conan Doyle (January 19th), every worker in the country who pays income tax or universal social charge (USC) or both has benefited from the changes to personal taxation in Budget 2015. A total of 80,000 lower-paid workers will no longer be liable for USC; this is on top of 330,000 removed from payment of USC over the last three years.
Budget 2015 eased the burden of the USC on those on lowest incomes by increasing thresholds and reducing rates. Anyone on incomes of less than €12,012 are now exempt from USC. The standard rate band of income tax was also increased by €1,000 from €32,800 to €33, 800, meaning that workers pay the higher rate of tax on less of their earnings. In addition the higher rate of income tax was reduced from 41 per cent to 40 per cent.
If these tax reductions are not reflected in net pay, we would encourage workers to raise this issue with their employers. – Yours, etc,
BRENDAN LOUGHNANE,
BRIAN MEENAN,
Press Office,
Department of Finance,
Dublin 2.