Dáil debates
Wednesday, 13 May 2009
Finance Bill 2009: Second Stage (Resumed)
12:00 pm
Michael McGrath (Cork South Central, Fianna Fail)
I will give examples. Deputy Richard Bruton said a person on the average industrial wage was paying tax of 51%. Yes, he or she is, on a tiny proportion of his or her income. A person on €40,000 is paying an effective rate of tax of 22.1% following the supplementary budget. The equivalent in 1997 was more than 40%. We have brought taxation levels back to those which pertained between 2005 and 2006. In 2005 this person was paying 24%; in 2006 he or she was paying 21.9%. Thus, we are now back to 2005-06 levels.
Let us take another example of a married couple with two children and one income of €60,000. In 1997 they had an effective rate of tax of 36%. Under the supplementary budget measures, their effective tax rate is 24%.
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