Fianna Fail has launched its tax package in a bid to woo the voters looking for goodies.
Traditionally it’s the tax changes that can put money back in people’s pockets that really get voters’ juices going - and Fianna Fail has now made its pitch.
The headline proposals are to cut the main rate of USC by 1% from 4.5% to 3.5%, and to increase the point where you start paying standard income tax by €3,000 over five years.
Overall the tax mix will see an average of between €1,050 and €1,400 back in the pockets of ordinary individuals and families.
Party finance spokesman, Michael McGrath, said that the changes will be “modest” and “responsible” in the context of choppy economic waters ahead.
Mr McGrath said the primary aim of the party’s tax package will be to ease the pressure on ordinary middle income working families.
The total cost of the package will be €1.3billion, compared to what is expected to be a more generous set of proposals from Fine Gael.
But Mr McGrath pointed to the fact that Fine Gael had promised before to get rid of the USC tax before the last election and that this had never happened.
He said this proves that Fine Gael will just ditch their promises after the election.
Other tax proposals to help the ordinary worker will see a reintroduced rent tax credit worth €600 a year, an increase in the home carers’ tax credit of €2,000 per annum and a registered childminder credit giving back €2,000 a year.
Fianna Fail say that a single person earning €40,000 a year and renting would have €1,400 a year in their pockets.
For a family with one earner bringing in €40,000 a year and renting while trying to get on the property ladder, it would see them €1,200 a year better off.
And for a single self-employed person with a good job on €50,000 a year, they’ll see €1,045 more in their pay packets over a full year.
Mr McGrath added: “Fine Gael have completely failed to tackle housing, health and the rising cost of living.
“In our manifesto, Fianna Fail will be prioritising investment in vital public services, but we believe that a move in personal taxation is also needed to ease the financial burden on working families.
“If elected to government, we are committing to introduce personal tax measures amounting to €1.3billion to ease the pressure on middle income working families.”
