Tax cuts will create 15,000 jobs - Taoiseach
Taoiseach Enda Kenny has said tax cuts introduced in next week’s Budget will lead to the creation of an extra 15,000 new jobs.
Mr Kenny said Finance Minister Michael Noonan had presented plans to reduce the 52pc marginal rate of tax before the Cabinet this morning.
However, the Taoiseach refused to give any details of how he planned to reduce the tax rate which is comprised of 41pc income tax, 7pc PRSI and 4pc universal social charge.
“The decision has been made and presented by the Minister for Finance which will deal with the process of reducing the rate of 52pc,” he said.
“That’s good for the economy and it’s good for the people because the get a sense of clarity as to what extra they will have.
It’s good for potential employers because they will know that the process has begun of reducing that level of tax.”
He added: “I won’t give you the details because it hasn’t been signed off by Government but the intent in the budget next week is to introduce a reduction in that 52pc rate."
The Taoiseach was speaking at the launch of the Government’s Pathways to Work 2015 programme which will introduce a number of initiatives aimed at getting people off social welfare and back into employment.
Tánaiste Joan Burton’s Department of Social protection is overseeing the new initiatives which include allowing parents returning to work retain additional social welfare payments they receive for children.
The initiative could see parents returning to work receive €30 per child on top of their wage.
Ms Burton said she hoped schemes like JobBridge and JobPlus would result in 50pc of people interviewed for new jobs coming from the live register.