The true cost of financial crisis
Published 25/11/2011 | 05:00
The figures showing that the average family is now more than €600 per month worse off following the last four savage Budgets, coupled with the fact that there is even more pain to come, beg the question: just how much more can taxpayers take?
Yesterday the Institute of Taxation published figures showing that when the universal social charge, lower tax bands, reduced tax credits, increased fuel duty, cuts in social welfare, abolition of the early childcare allowance and a host of other taxes and spending cuts are taken into account, a family of two children on the average industrial income is now €600 per month out of pocket. That's the equivalent of a 16pc cut in take-home pay.
And, believe it or not, these are the lucky ones. The Institute of Taxation figures take no account of pay cuts, short-time working or job losses. When these are added to the mix, many people are much, much worse off than even these grim figures suggest.