USC arrival blamed for tax hike on low earners
Published 13/02/2012 | 05:00
THE Government yesterday blamed the arrival of the universal social charge for the dramatic increase in tax bills for low-paid and middle-income workers.
Figures released by the Department of Finance show those earning up to €50,000 suffered the highest increase in tax last year.
The income tax bill for a family earning €17,500 to €20,000 a year rose from €95 to €300 -- an increase of 215pc.
Likewise, a family on €20,000 to €30,000 is paying €263 more -- a hike of 36pc. And a family on between €40,000 and €50,000 is being taxed by €997 more -- up 23pc.
But the percentage increase in 2011 was less for higher earners.
Junior finance minister Brian Hayes defended the Coalition's record, pointing to the reversal of the cut in the minimum wage.