No tax on the minimum wage
FINANCE Minister Brian Lenihan yesterday insisted low income earners who are subject to the €1 drop in the minimum wage will not enter the tax net. The minimum wage was cut to €7.65 in the Budget and will affect about 47,000 workers.
Fine Gael and Labour have both promised to reverse it in the future.
While the Government claimed the reduction would improve competitiveness, opposition parties said it would have no impact because so few people are on the minimum wage.
Economists also believe the cut will do little to reduce business costs and improve competitiveness.