Summary of measures on personal taxation

Published on: 22 January 2020


Click here to download the full personal taxation policy document

If elected to government, Fianna Fáil will:

  • Reduce the 4.5% Universal Social Charge to 3.5%;
  • Increase the Standard Rate Income Tax Band by €3,000 for an individual and €6,000 for a couple;
  • Fully equalise the self-employed with PAYE workers by increasing the Earned Income Tax Credit to €1,650;
  • Assist home carers by increasing the Home Carer’s Tax Credit to €2,000;
  • Increase the income Tax Exemption limits for the over 65s by €500 for a single person and €1,000 for married couples;
  • Help renters by introducing a €600 Rental Tax Credit;
  • Help parents using a registered childminder with a €2,000 Childminder Credit.

Here are a few practical examples of our measures:

A single person earning €40,000 and renting:

Under Fianna Fáil’s personal tax measures this person will:

  • Have nearly €1,400 a year more in their pockets which equates to roughly €116 a month;
  • Reduce the tax paid from €8,348 to €6,953;
  • Reduce the person’s effective tax rate from 21% to 17%;

A single person earning €50,000:

Under Fianna Fáil’s personal tax measures this person will:

  • Have nearly €900 a year more in their pockets which equates to roughly €75 a month;
  • Reduce the tax paid from €13,198 to €12,303;
  • Reduce the person’s effective tax rate from 26% to 25%;

One income family earning €40,000 and renting:

Under Fianna Fáil’s personal tax measures this person will:

  • Have nearly €1,200 a year more in their pockets which equates to roughly €100 a month;
  • Reduce the tax paid from €4,158 to €2,963;
  • Reduce the person’s effective tax rate from 10% to 7%;

One income family earning €50,000:

Under Fianna Fáil’s personal tax measures this person will:

  • Have nearly €1,300 a year more in their pockets which equates to roughly €108 a month;
  • Reduce the tax paid from €8,148 to €6,853;
  • Reduce the person’s effective tax rate from 16% to 14%;

Single self-employed person earning €40,000 and renting:

Under Fianna Fáil’s personal tax measures this person will:

  • Have over €1,500 a year more in their pockets which equates to roughly €129 a month;
  • Reduce the tax paid from €8,498 to €6,953;
  • Reduce the person’s effective tax rate from 21% to 17%;

Single self-employed person earning €50,000:

Under Fianna Fáil’s personal tax measures this person will:

  • Have around €1,045 a year more in their pockets which equates to roughly €87 a month;
  • Reduce the tax paid from €13,348 to €12,303;
  • Reduce the person’s effective tax rate from 27% to 25%;

One income self-employed family earning €40,000 and renting:

Under Fianna Fáil’s personal tax measures this person will:

  • Have around €1,345 a year more in their pockets which equates to roughly €112 a month;
  • Reduce the tax paid from €4,308 to €2,963;
  • Reduce the person’s effective tax rate from 11% to 7%;

One income self-employed family earning €50,000:

Under Fianna Fáil’s personal tax measures this person will:

  • Have around €1,445 a year more in their pockets which equates to roughly €120 a month;
  • Reduce the tax paid from €8,298 to €6,853;
  • Reduce the person’s effective tax rate from 17% to 14%;

Separately Fianna Fáil is announcing an expansion of the Rainy Day Fund .

Expansion of the Rainy Day Fund is the prudent and responsible thing to do-

Fianna Fáil will:

  • Invest a further €250 million a year into the Rainy Day Fund bringing the total annual contributions to €750 million.
  • This, along with the €1.5 billion invested from the Ireland Strategic Investment Fund, will bring the total amount in the Rainy Day Fund to €5.25 billion in 2025
  • This will be in addition to running a surplus in the general government balance every year.

Commission on Taxation

Fianna Fáil is also proposing the establishment of a new Commission on Taxation to examine the overall sustainability of our tax system.

The last Commission on Taxation reported in 2009, so it is now timely to examine a number of key issues.

The Commission will examine, for example,:

  • The future of the Universal Social Charge;
  • The taxation impact of moving to a low carbon economy;
  • The sustainability of corporation tax receipts in the context of global tax reform;
  • The taxation environment for indigenous firms;
  • The taxation of property funds.

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