Oireachtas Joint and Select Committees

Wednesday, 17 November 2021

Committee on Budgetary Oversight

Inflation: Discussion (Resumed)

Dr. Karina Doorley:

That issue came out in our post-budget analysis. We looked at the effect of the direct and indirect tax and welfare measures across the income distribution. While the poorest households were well compensated, the highest income households were also well compensated because of the increases to tax bands and credits. It was really about the middle income households who were earning too much to benefit from social welfare but not enough to benefit from the increase in the standard rate band. Those households were not fully compensated for the increase in the carbon tax.