You are here
Fairness and Changing Income Taxes
Social Justice Ireland published Fairness and Changing Income Taxes: September 2018 on 18th September. The study assesses the fairness of seven possible income taxation options, each with a full-year cost of between €254m to €348m; equivalent to between 1.2% and 1.6% of the annual income taxation yield. The seven options are:
• increasing the personal tax credit;
• reducing the 0.5% and 2% USC rates;
• reducing the top tax rate to 39%;
• reducing the standard tax rate to 19%;
• increasing the standard rate band;
• reducing the 4.75% USC rate; and
• reducing the 8% USC rate.
Overall only two changes lead to a fair outcome: increasing the personal tax credit; and reducing the 0.5% and 2% USC rates. Each of the two fair options would provide beneficiaries with an improvement in their annual income of around €90 - €130.