It is clear that we cannot afford such generous tax reliefs on income. In this budget, therefore, we have reduced the personal and PAYE tax credits by approximately 10% to €1,650 each from €1,830. We have reduced the single standard rate band to €32,800 from a value of €36,400. The married one income band has been reduced to €41,800 from €45,400 and the married two earner band has been reduced to €65,600 from €72,800. These measures will reduce the entry point to income tax for a single individual to €16,500 and for a married one income family to €28,800. These measures will return tax credits and bands to where they were in 2006. As a result of these measures, the numbers exempt from income tax in 2011 will be reduced to 38% from 45%. The numbers exempt will be reduced to 843,400 from the 2010 figure of 982,900 - a reduction of almost 140,000.

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