Sep 2015
9
Budget 2016 - What to expect?
The announcement of Budget 2016 is just around the corner, on Tuesday the 13th Of October. So what can us PAYE workers expect?
Well, according to Mr Noonan we will have in the region of €1.5 billion extra to spend which will make for the first positive Irish Budget in 8 years.
The extra €1.5 billion is to be split equally between spending increases and tax cuts.
Changes to the PRSI system and reduction in the Universal Social Charge are apparently afoot. This should put at ease the minds of those low-paid workers who, with the increase in minimum wage would have actually ended up taking home less pay due to the increase in USC and PRSI.
There may also be cuts to USC and PRSI for those with higher earnings. The Government having previously promised to cut the 7% rate of USC to reduce the marginal tax rate on all those earning less than €70,000 a year to below 50%.
Vague promises on keeping the burden of taxation low and ending the unfair treatment of the small businesses and self-employed as well as improvements to Child Benefits are floating around but whether or not the Government keeps those promises remains to be seen.
