CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Irish Taxpayers' After-Tax Income Up Following 2016 Budget

Irish Taxpayers' After-Tax Income Up Following 2016 Budget

by Jason Gorringe, Tax-News.com, London

22 December 2015


Ireland's Economic and Social Research Institute has calculated that the 2016 Budget led to a 0.7 percent increase in aggregate household disposable income, whereas budgets over the 2009-2016 period have generally given rise to substantial disposable income losses.

The findings are presented in a new paper published by ESRI, which examines the "cash" or "first round" impact of Budget 2016 and the combined impact of budgets for the years 2009-2016, inclusive.

ESRI said that compared with a wage-indexed benchmark, Budget 2016 led to a modest increase in aggregate household disposable income (i.e. incomes including welfare payments and net of income tax, Universal Social Charge (USC), and Pay-Related Social Insurance (PRSI)). For the 20 percent of households with the lowest incomes, on average Budget 2016 will have a similar impact to a neutral, wage-indexed budget. For most other income groups, the changes introduced will lead to gains of between 0.5 percent and one percent, as compared with a neutral or wage-indexed budget, ESRI said.

The Budget introduced a number of changes to the USC that will reduce the marginal rate of tax to 49.5 percent for those earning less than EUR70,044 (USD75,772) a year.

ESRI also calculated that budgets delivered over the 2009-2016 period have given rise to substantial losses at all income levels. For most income groups, these losses were between 7.5 percent and just over ten percent. The greatest policy-induced losses were experienced by those in the highest income group, at just over 14 percent, and the lowest income group, at 12.75 percent.

TAGS: tax | Ireland | budget | tax thresholds | tax rates | social security | revenue statistics | tax reform | individual income tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »