12 Aug 2022

Income tax changes will benefit people and families in Tipperary, says Fine Gael senator

€50 increase in each of the main tax credits

Senator Garret Ahearn

Senator Garret Ahearn

Income tax changes taking effect from January 1 will benefit people and families in Tipperary in 2022, a Fine Gael senator has said. 

Senator Garret Ahearn said Fine Gael in Government is supporting average and middle-income earners to meet the rising cost of living through income tax changes. The tax package was announced by Minister for Finance Paschal Donohoe in October as part of Budget 2022.

Senator Garret Ahearn continued, “Fine Gael is on the side of the average and middle-income earner who is dealing with the rising cost of living. The tax changes announced by my colleague Minister Paschal Donohoe in the Budget, come into effect on the January 1 and will benefit everyone who pays income tax, supporting people and families in Tipperary.

“These are tangible changes that everyone will feel the benefit of in their pocket throughout 2022. The standard rate band for all earners will rise from €35,300 to €36,800 for single earners, from €39,300 to €40,800 for one-parent families; and from €44,300 to €45,800 for couples.

"There is also a €50 increase in each of the main tax credits – personal tax credit, employee tax credit and the earned income credit.

“There is also a change to the Universal Social Charge- the 2% rate band ceiling will increase in line with the increase in the national minimum wage from €10.20 to €10.50 per hour. This was the eighth increase in the minimum wage under Fine Gael in Government and we wanted to ensure that full-time workers benefiting from the increase will remain outside the top rate of USC.

“As well as the tax changes, Fine Gael also prioritised spending measures in Budget 2022 to help combat the cost of living and add to our quality of life. We introduced a €5 increase in social welfare payments across the board including disability payments, pensions and working age payments. The Fuel Allowance increased by €5 per week and the Living Alone Allowance increased by €3 per week. 

“Fine Gael is committed to tackling the rising cost of living and the tax changes coming into effect this week will be felt by individual earners and families in Tipperary,” he added.

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