Budget 2025

They're planning on cutting the USC by 1%

Why not cut the bloody thing entirely? I suppose that means they wouldn't be able to campaign in the upcoming election on scrapping the USC

USC is a good tax! Flat rate means that everyone contributes which widens the tax base. Getting rid of it would be a colossal error. They could re-name it maybe.

Are there changes to tax credits on the cards? Doesn't appear to be much for those earning less than 40k…

Sounds like more giveaways again this year, you'd nearly think there was an election looming.

I don't mind the USC but I think it's relying too heavily of middle earners. 100k isn't really high earner anymore but that person is taking on massive work and responsibilities to simply support everything else. If such people didn't still struggle to make ends meet as a family ok but you probably need to earn 150 now to be able to afford the 8% rate. I think the 8% should be reduced to 6% until 150k

Madness. There seems to be no will to get long term claimants off the dole.

You might spare a thought so for those of us living in a town in Cork with a mortgage and a couple of kids earning half that.

I was going to respond but then I saw you'd done it for me. +1

Generally people on 100k are doing more for it and while we surely need a progressive tax system the burden on the squeezed middle is too excessive.

The income tax regime here punishes people and hard working people find themselves asking the question why work harder and longer, why would you bother doing O.T and then we have the moan fest when gards, nurses etc dont want to do O.T due to them losing 50% on tax + what ever it costs to do the extra work. When will the government take their feet off the neck of workers here. the 20% tax band should be extended to 60k and your tax free allowance should be upped to 30k allowing you to keep your first 30k. What is the point in people working their butts off when others will get the equivalent if not more on the dole for doing phuck all. They are actively incentivizing career and multigenerational dole heads.

Are you mad ? The income levy was sold to the population as the country’s finances were in bits.

We accepted this to help the country through a bad bad time financially. We have upheld our part and most of the money needed has been paid back.

It’s more than time to abolish it. Give it back.

No its not as we are talking about an additional 50k in pay in Dublin.

If you take the averages of costs between the 2 cities

Monthly net income after tax for someone on 50k is about 3237 a month for someone on 100k is 5304 amonth. So before any other cost a person earning that additional 50k in Dublin (or anywhere else for that matter) is only up by 2067 a month or 24k a year.

Take average accommodation (both rental and mortgages I have the links below as to where I got these figures) as we all need to live and the amount differential drops to to 1329 a month so about 15k. When you put in the 12% cost of living differential (this is without accommodation) living in Dublin as apposed to Cork this drops to 1169 a month. So without kids your 50k works out at about 14k extra for that person a year. Throw in things then likes kids, creche/child minders, insurance and property tax and this differential goes down further.

AFTER TAX CALC

https://services.deloitte.ie/

Average house price in Cork is 354307, in Dublin its 463265 meaning a person living in Dublin has to pay back 108958 extra for a house. The current average term left to pay a mortgage is 15 years with them starting at 29 years on average at an average rate of 4.19% lets leave that at 4%.

So that 108956 after 15 years of payment works out at an additional 800 Euro a month for the lad in Dublin. Rent in Dublin vs Cork is about 450 more to taking the average of the 2. In Dublin they are paying about 675 a month extra for accommodation.

According to numero then Dublin is about 12% higher than Cork that excludes accommodation. If you add in a kid or with creche fess it becomes even less.

IRISH PROPERTY PRICES (Dublin vs Cork)

https://her.ie/life/average-house-in-ireland-costs-new-report-618391

AVERAGE MORTGAGE TERMS LEFT TO PAY

https://moneysherpa.ie/mortgage-statistics-housing-statistics-ireland/

AVERAGE MORTGAGE FULL REPAYMENT PERIOD

https://www.statista.com/statistics/1415491/average-first-time-buyer-loan-term-ireland/#:~:text=In%202017%2C%20the%20average%20loan,subsequent%20borrowers%20was%20notably%20shorter.

RENT IN CORK AND DUBLIN

https://www.irishexaminer.com/news/arid-41462815.html

So long story short the additional 50k in Dublin is not equivalent to 50k in Cork.

 Its a decrease in welfare* rates which is needed as an incentive to go out and get a job. I really don't get the mentality ??

Cutting dole at a time of economic prosperity is a big no-no with Irish voters. The small minority who would favour such a move, FG reckon are already in their corner anyway…

Looks like the 40% tax band will widen to 44k, but that is still very low. Its equal to 60k in the north, where the cost of everything is cheaper.

We have the USC, a very low personal tax allowance and a very low entry point for 40% income tax.

Anyone earning an average salary or above is hit from all angles.

income tax avoided easily how ?

What income bracket are you thinking are the 'avoiding tax' bracket? The top 1%? You probably need 130 just to get started on top 1%.

I don't think the 100k earner dislikes USC because they can't avoid it. I think they dislike because they are genuinely getting hit too hard by it.

Thou talketh too mucheth sense

The. scale down income tax. Its all tax at the end of the day.

I understsnd some may avoid USC, but do we think all self employed folks are paying their due level of income tax and PRSI?

I have to commend you on such a detailed post but.…

All your calculations are based around property. Why? I never specifically mentioned rent or mortgages. You're gone of on a desperate tear altogether to justify how €50k is different between Cork and Dublin based solely on rent and house prices.

In relation to your comment about the average of costs between the two cities.

Is a week's shopping dearer in Dublin?

Is home heating oil dearer in Dublin?

Is petrol and diesel dearer in Dublin?

Is childcare dearer in Dublin?

Please don't tell me I'm missing the point. I understand your point but there's more to the "cost of living" than paying a mortgage or rent, hence the term living.

It's looking that way except for job seekers by the sounds of it

I think yes, those things would be dearer in Dublin especially childcare.