Focus on Widening Tax Bands Rather Than Reducing Tax Rates in Future Budgets – says O’Rourke.

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Local Fianna Fail TD, and Deputy Spokesperson on Finance, Frank O’Rourke, has called on the Minister for Finance to focus on widening the tax bands rather than on reducing the tax rates in the forthcoming budget.

“At present, the standard rate tax band for a single person is €33,800.  PAYE employees pay the higher rate of tax of 41% once they earn over this amount. In my view, we should increase the standard rate tax band to €40,000 in the forthcoming budget, enabling more workers to be taxed at the lower rate and incentivising work.”

“Reducing the higher tax rate would disproportionately assist the better off.  Widening the tax bands is a fairer way of reducing the overall tax burden, but it is less headline friendly. This Government seems more focussed on spin and getting headlines rather than on substance and delivery, so could favour reducing tax rates rather than widening the tax bands.”

 “We are seeing the cost of living increasing, with increases in motor insurance, fuel, in public transport costs, in rents, medical expenses and back to school costs. Workers, particularly those who are earning modest incomes, need their tax burden reduced.”

“Widening the tax bands is much fairer than reducing the higher rate of tax and we must focus on reducing the tax burden where lower income families derive the most benefit. I will continue my work in relation to holding the Government to account in relation to the rising cost of motor insurance, to ensure what people get in one hand is not taken by the insurance companies in the other hand,” concluded Deputy O’Rourke

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