The Taoiseach has said he is “not hung up” on the introduction of a 30% tax band to help squeezed middle earners.
Leo Varadkar declared that he is "committed" to amend the law so that individuals can earn up to 50,000 euros year without being subject to the highest rate of income tax.
It will be up to the Cabinet to decide whether that is accomplished by raising the normal rate cut-off point or by enacting a middle tax rate of 30%, he continued.
In order to assist medium income people, Mr. Varadkar suggested the creation of a new middle rate tax band in March.
He requested Paschal Donohoe, the finance minister at the time, to weigh the benefits and drawbacks of a new rate.
Mr. Varadkar responded that it is "very vital" for the government to assist working people with the cost of living through a combination of wage raises and income tax reductions when asked whether a 30% rate will be implemented now that he has retaken the position of Taoiseach.
I think work should be compensated; Mr. Varadkar stated. "And I believe that people in Ireland must pay the highest rate of income tax on really low earnings.
"We'll reach the 40,000-euro standard rate cutoff point next year. I want to advance that.
"The policy goal I've established is to get us to a place where individuals can earn up to 50,000 euros year without being subject to the highest rate of income tax.
"Getting there might require a few budgets. But regardless of whether we do it by raising the normal rate cut-off point or by a middle tax rate, I'm adamant that we should.
"I've never been fixated on that, and I'm not now. But between now and the next budget, we certainly need to talk about that at the federal level.
But without a doubt, I would like to see us continue along that path so that you may earn more money without having to pay the highest rate of income tax, if the public finances let it.
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