TAKE-HOME PAY:MILLIONAIRES WILL see their take-home pay increase due to the Budget, Sinn Féin's finance spokesperson has said. Recently elected Donegal South West TD Pearse Doherty said the universal social charge benefited many people earning more than €200,000.
“Self-employed millionaires will actually pay €34,931 less than they currently do as a result of the new universal social charge. While being hit with €11,936 extra in income tax and PSRI, they will still make a tidy profit of €22,995,” he said.
“This is a Budget for the wealthy. This is a Budget for the financiers and the propertied rich. The Minister spoke of burden sharing, but what is actually happening is burden offloading.
“Someone with an income of €500,000 will get a 4 per cent increase in their net income. At the same time someone on PAYE and earning €25,000 will be 4.3 per cent worse off.”
Labour leader Eamon Gilmore said low and middle-income families were being made take most of the pain.
“The highest earners pay more PRSI, but are compensated by the cut in the top rate levies. The 7 per cent universal charge is replacing a combined 11 per cent health contribution and levy for the highest earners,” he said.
Mr Gilmore’s party colleague Roisín Shortall said the universal social charge was a “working poor tax”, which shifted the tax burden away from high earners and on to those on lower pay.