Personal impact of changes - dear lord please tell me I've made a mistake somewhere!

irishgrover

Hi All,

just did some very rough calculations on how government decisions will effect my income in the coming year...
background - married, 4 kids under 6 (including twins), wife currently being made redundant, so I'm only worker going forward (I earn between 60k and 70k)

income levy increase > 500
PRSI increase > 1200

supplementary childcare payment decrease(when it stops) > 3300
children's allowance decrease (assuming it's taxed at 41% in next budget) > 6600

reduction in (post tax) disposable income = 9700

So in order to offset these additional taxes / reductions in benefit I would need to increase my wages by about €25,000 to €30,000 ?

Dear Lord, someone please tell me I'm wrong

Richard Dower

Thats horrible!!

Riskymove

see appendix a at http://www.budget.gov.ie/


Under the illustrative cases they show examples

on is for "Lorraine and Colm" which seems to be close to your situation and suggests a loss of €2,800 although thats with 2 kids so I guess you lose more of the child payment

nesf

Eh, you're making a big assumption on the 41% taxation of child welfare. We've seen no details yet.

For definite, you're looking at circa 3.5K this year (if it was a full year) and circa 6K in 2010 not counting any changes to child allowance.

irishgrover

nesf wrote: »

Eh, you're making a big assumption on the 41% taxation of child welfare. We've seen no details yet.

true - but they've said it will either be means tested or taxed. So given current trends in Dept of Finance I would not be at all surprised with a cut off of 40 or 50k for means test and anything above that taxed, or not give at all

havana

This is useful - still has old figures so you'll need to change the levies etc

http://www.macdonaldfc.ie/taxcalculator.php

InReality

The CA will be means tested - so don't know how that will be calculated yet.

The rest sounds right.

As an aside -
The supp child payment , was a real boom time payment IMO.
No evidence to back up that it helped child poverty ( unlike CA ),
so I think its "fair" that it gone.

Highsider

Go on the dole. You'll lose nothing. That's right they actually reward you in Ireland for doing SFA :mad:

jenzz

I just worked my own & its actually funny..

Last week when watching prime time I didnt understand what they were saying so I went online & checked the dept of social welfare.... I saw a big heading for single parent family income supplement & went in for a look .when I checked the threshold for single income 1 parent families with 2 kiddies was €590. I earn €616 PW. So €16 over the limit PW. Didnt lose any sleep over it UNTIL THIS AFTERNOON .

Early childcare gone out the window. double levy's...... la la la la ....... Now I am below the limit. so if ( & only if) I make a claim for this supplement they now have to give me a minimum of €20 per week. & then because im IN the system I can claim all the other nice things they have on offer......... I can claim rent supplement & butter vouchers & school uniforms.

So now Mr Clever Cowan by slapping all the taxation on the lower most vulnerable people who work damn bloody hard out there to keep heads above water & uniforms on free-education kiddies you have just given me the golden key into your system.

& what does that mean - - Its going to cost you more bloody money in social welfare payments to another chunk of us in society. & your so bloody thick you didnt even realise it !

I heard on one of these economic programmes last week it costs the state €11 for every €10 they pay in social welfare payments. WELL ADD ME TO THE LIST YOU TOOL !

irishgrover

InReality wrote: »

T
As an aside -
The supp child payment , was a real boom time payment IMO.
No evidence to back up that it helped child poverty ( unlike CA ),
so I think its "fair" that it gone.

yip, to and extend I agree with you on that. It was a complete fudge solution to the issue of childcare/creche costs. FF was unwilling to do anything that seems to encourage working parents over stay at home mothers, so they introduced a universal payment.
The problem is that the moment they did it, and in addition the moment they increased it a few years ago, every fecking creche in the country raised their prices to ensure they took every red cent of it....
However we could discuss the limitations of our current tax systems for years....

nesf

jenzz wrote: »

So now Mr Clever Cowan by slapping all the taxation on the lower most vulnerable people who work damn bloody hard out there to keep heads above water & uniforms on free-education kiddies you have just given me the golden key into your system.

Jesus, what planet are you living on? People earning the really high salaries will be losing an additional 9-11% after the levy and PRSI is taken into account. As distasteful as it is to tax the low paid, you can hardly claim that they slapped all the tax on them!

Purple Gorilla

I'm down €4069 this year

Highsider

jenzz wrote: »

I just worked my own & its actually funny..

Last week when watching prime time I didnt understand what they were saying so I went online & checked the dept of social welfare.... I saw a big heading for single parent family income supplement & went in for a look .when I checked the threshold for single income 1 parent families with 2 kiddies was €590. I earn €616 PW. So €16 over the limit PW. Didnt lose any sleep over it UNTIL THIS AFTERNOON .

Early childcare gone out the window. double levy's...... la la la la ....... Now I am below the limit. so if ( & only if) I make a claim for this supplement they now have to give me a minimum of €20 per week. & then because im IN the system I can claim all the other nice things they have on offer......... I can claim rent supplement & butter vouchers & school uniforms.

So now Mr Clever Cowan by slapping all the taxation on the lower most vulnerable people who work damn bloody hard out there to keep heads above water & uniforms on free-education kiddies you have just given me the golden key into your system.

& what does that mean - - Its going to cost you more bloody money in social welfare payments to another chunk of us in society. & your so bloody thick you didnt even realise it !

I heard on one of these economic programmes last week it costs the state €11 for every €10 they pay in social welfare payments. WELL ADD ME TO THE LIST YOU TOOL !

616 a week? You want me to feel sorry for you. This is a prime example of the kind of greed that has wrecked this country in the first place.

Kristopherus

Highsider wrote: »

616 a week? You want me to feel sorry for you. This is a prime example of the kind of greed that has wrecked this country in the first place.

+1

InReality

Purple Gorilla wrote: »

I'm down €4069 this year

So your still on what a year ? 80k+ ?

Purple Gorilla

InReality wrote: »

So your still on what a year ? 80k+ ?

Yep yep....dont worry...I realise there's others much worse off than me after this budget.

amen

616 a week? You want me to feel sorry for you. This is a prime example of the kind of greed that has wrecked this country in the first place.

thats only 32K a year. Hardly a fortune.

Everyone has got to stop this rich/poor, public/private sector worker stuff.

problem is what we pay in taxes is spent inefficiently.