How the bottom line on new taxes affects you
Published 04/01/2011 | 05:00
A new year brings a new start, and it also hails the beginning of the new tax regime imposed following one of the harshest budgets delivered in the history of the State last December.
The agri sector will privately concede that it emerged relatively unscathed from the cuts in State spending when compared to other sectors of the economy. More than €400m in State supports and farm schemes was left relatively untouched.
However, virtually every taxpayer will pay more in 2011 because of the changes to the tax bands and credits.
Aidan O'Boyle, tax manager at Grant Thornton, estimates that these have been reduced on average by 10pc. All the levies -- with the exception of PRSI -- have also been bundled into a Universal Social Charge.
The impact of the changes of this latter tax depends on how much you earn. Bizarrely, a young working person earning €30,000 a year will see their levies decrease, while a single-income family on €50,000 will see theirs jump by more than 7pc.
However, it's all the other changes that begin to add up when you are counting the euro left in your pocket after the Revenue takes its share.
The €500 hike in college fees will hurt families with children at the expensive third-level education stage. The cuts in child benefit may not seem much per week, but they also add up.
Even some state pensions have taken a cut.