Taxing Day For High Earners

The state's high earners will be dipping deeper into their pockets today as the Finance Bill put forward in December's budget is officially published today.

Publishing the bill this afternoon will give legal effect to measures announced in the Budget, including abolishing a number of tax reliefs and raising the effective tax rate for high earners.

From today, high earners will face an effective minimum tax rate of 30% plus Pay Related Social Insurance (PRSI) and income levies, and impose a €200,000 levy on wealthy tax non-residents.

Incentives to promote inward investment are also believed to be part of the Bill, with a number of moves to make Ireland more attractive to the funds management industry in particular.

In response, Opposition party Fine Gael have published their own proposals for tax reform, claiming the Government's plans would have a "destructive impact".

A memo published by the party said: "Fine Gael warned the Government over the last year that its attempts to tax its way back to economic recovery and health in the public finances would backfire because of the destructive impact on competitiveness and confidence."

Research and development spending is also expected to get some tax benefit in today's bill, however industry experts believe the measures will not go far enough.


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