Budget live thread

seamus

OK, here we are, income tax changes.

Riskymove

No offence but do we need more than one person announcing the same thing?
Maybe just leave Seamus at it and add in anything you think he missed??

seamus

Planning to reduce the 52% rate on low and middle income earners. No specifics, "Will be delivered over a number of budgets".

Reforms aiming to get people into work and keep them there.

seamus

USC entry point up to €12,000

2nd rate of USC ceiling to €16k

2% USC to 1.5%

4% USC rate to 3.5%

Income tax standard band up to 33,800

top rate of income tax from 41 to 40%

new 8% USC rate for incomes > 70k

11% usc on self employed income > 100k

Exemption from top rate of usc for medical card holders, down to 3.5%

Over 70s limited to 3.5% USC

handlemaster

Sinn Fein as we speak are trying to think what extra they would give away

seamus

^^
I may have gotten some of that wrong, but I think I got it all. He flew through it!

Looks like a lot of change for lower earners but giving with one hand and taking with the other for higher incomes.

Stheno

seamus wrote: »

^^
I may have gotten some of that wrong, but I think I got it all. He flew through it!

Yup you got it all, the second rate kicks in at min wage, is that 16k?

seamus

Now, how we're going to pay for these tax reductions:

20 cigs up by 40c

Pouches up by 60c/25G

handlemaster

biggest up roar over the price of fags.....

Riskymove

seamus

No alcohol duty
No fuel duty
No motor tax
No VRT change

No other taxes going up.

Riskymove

seamus

I think that's all folks, he's going through the conclusion now. Of course the devil is always in the detail that they publish afterwards...

handlemaster

class act... I'll read that again....

Floppybits

Disgraceful carry on during the budget speech, not a professional amongst the lot of them.

Stheno

Riskymove wrote: »

That's confusing me, is the last column not suppposed to add up to 100?

abbir

Stheno wrote: »

That's confusing me, is the last column not suppposed to add up to 100?

Only the >50,000 and < 50,000 entries should add up to 100

titan18

Stheno wrote: »

That's confusing me, is the last column not suppposed to add up to 100?

Nope, it's inclusive. If you're above 200k, you also happen to be above 50k etc.

handlemaster

well in fairness no matter what you say about the government its some change from what they were handed by the last government.

pc7

Was there no break/give for those on benefits? Or will Howlin do that section?

Riskymove

Stheno wrote: »

That's confusing me, is the last column not suppposed to add up to 100?

No

its a phased list

basically the last two rows are under 50k and over 50k and they need to add up to 100

In other words those paid over 50k pay 80% of the tax and those under pay 20%

It then goes on to show the effect of looking at more higher paid people...i.e. those paid over 80k pay 55% and so on

Stheno

Gotcha thanks

No increase in Child Benefit?

Riskymove

pc7 wrote: »

Was there no break/give for those on benefits? Or will Howlin do that section?

Yep, he does welfare amongst other things (government expenditure generally)

kitten_k

Stheno wrote: »

Gotcha thanks

No increase in Child Benefit?

RTE have that child benefit is going up €5

http://www.rte.ie/news/2014/1014/652100-budget-2015/

Riskymove

Stheno wrote: »

Gotcha thanks

Worth noting once again that just 24% of workers pay 80% of the tax

Riskymove

Increase of €210million in Capital spending for 2015, to over €3.5billion

kennyb3

Stheno wrote: »

Gotcha thanks

No increase in Child Benefit?

That's howlins end - spending (taxing bit done)

Riskymove

Gross current expenditure for 2015 will be just over €50billion

kitten_k

When do the income tax changes come into effect?

Stheno

Riskymove wrote: »

Worth noting once again that just 24% of workers pay 80% of the tax

And am I imagining that the marginal rate for those on over 100k has now gone from 52% (41% PAYE, 4% PRSI and 7% USC) to 55%(40% PAYE, 4%PRSI and 11% USC)?

Riskymove

kitten_k wrote: »

When do the income tax changes come into effect?

In the next tax year in January

Riskymove

Stheno wrote: »

And am I imagining that the marginal rate for those on over 100k has now gone from 52% (41% PAYE, 4% PRSI and 7% USC) to 55%(40% PAYE, 4%PRSI and 11% USC)?

and remains at 52% for 70k upwards

the only actual reduction for those from 70k up will be the higher level for the 40% kicking in

Riskymove

spending of €19.4billion on social welfare

no cuts to anything in welfare

wonderfulname

kitten_k wrote: »

RTE have that child benefit is going up €5

http://www.rte.ie/news/2014/1014/652100-budget-2015/

And another 5e next year just confirmed

niamh.foley

Stheno wrote: »

Gotcha thanks

No increase in Child Benefit?

5euro

Stheno

Riskymove wrote: »

and remains at 52% for 70k upwards

the only actual reduction for those from 70k up will be the higher level for the 40% kicking in

And does the rate of USC apply on all income or is it staggered? i.e. 0 on first twelve, 3.5 up to 16.5, etc or does someone on say 71k now pay 8% on all of their income?

niamh.foley

Elephpant in the room irish water is up

ressem

Riskymove wrote: »

and remains at 52% for 70k upwards

the only actual reduction for those from 70k up will be the higher level for the 40% kicking in

There are fewer allowances against USC so it'll probably be an effective increase, rather than remaining the same for those over 70K.

Staggered.
http://www.budget.gov.ie/Budgets/2015/Documents/2%20Summary%20of%202015%20Budget%20Measures%2014%20Oct%2000.09.pdf

Godge

Stheno wrote: »

And am I imagining that the marginal rate for those on over 100k has now gone from 52% (41% PAYE, 4% PRSI and 7% USC) to 55%(40% PAYE, 4%PRSI and 11% USC)?

For the self-employed, it was always 54%, there was a rate of 10% USC for earnings over 100k.

OldNotWIse

any water credit for OAPs under 70 not on household benefits?

seamus

Sorry, had a meeting!

€25m to try and deal with "delayed discharges" in hospitals

€3bn to elderly and disabled services

Riskymove

ressem wrote: »

There are fewer allowances against USC so it'll probably be an effective increase, rather than remaining the same for those over 70K.

it'll be a reduction at 70k but will end up an increase as you go beyond that

Riskymove

extra €9 a week for living alone allowance

Godge

ressem wrote: »

There are fewer allowances against USC so it'll probably be an effective increase, rather than remaining the same for those over 70K.

A very clever way to reduce taxes on work and increase taxes on rental income, investment income etc. where tax shelters helped reduce income tax liability.

seamus

Education:

No class size increases

1,700 new additional full time education posts.

Godge

Riskymove wrote: »

extra €9 a week for living alone allowance

That is more than a married couple on €45k get from the tax changes.

Lovely Bloke

seamus wrote: »

Sorry, had a meeting!

€25m to try and deal with "delayed discharges" in hospitals

€3bn to elderly and disabled services

Ewwwww

Lovely Bloke

Xmas Bonus is back ffs

Riskymove

Godge wrote: »

That is more than a married couple on €45k get from the tax changes.

plus ca change

foggy_lad

OldNotWIse wrote: »

any water credit for OAPs under 70 not on household benefits?

all welfare recipients getting the fuel allowance will also get the water allowance so it includes long term unemployed(over 15 months).