No change in bands or credits is, in effect, a tax increase – as wages rise in line with inflation, failure to move the bands drags more people into the net in real terms. All so we can pay for a VAT cut for one particular sector of the economy.
Impressive_Goose_602 on
Shock horror, no election to buy so ye are on yer own lads.
Commercial_Gold_9699 on
It’s not an election year so they were never going to. That rate cut to hospitality is a bad move.
Alastor001 on
If only they wouldn’t waste tax money so badly… Cough cough bike shelters, IPAs, certain hospital etc
FinnMcKoolio on
Ye voted for these, remember that.
SeanB2003 on
It doesn’t have to be this way. Remember that they are making choices when they try to tell you that problems are outside their control and nobody could do better.
Promises made during an election are solemn when made to business. Is €200 per month childcare solemn? Is increasing the supply of housing?
They could instead lower taxes on workers or hire the people we need to deliver public services. According to their own fiscal watchdog:
>As of 2025, reducing the VAT rate from 13.5% to 9% would cost €0.87 billion for a full-year (0.27% of national income), equivalent to cost of increasing the standard rate income tax bands by €3,000, hiring 11,400 nurses or 7,800 teachers.
Middle class gets squeezed again to pay for everything.
Atpeacebeats on
In other words: now that the price of butter and a plank of wood have doubled it’s a tax increase.
douglashyde on
An example being if someone earns 50K and spends 95% of what they earn.
A 2% salary increase & 2% inflation means they are worse of by €174 a year.
SirJoePininfarina on
Honestly I’d rather that because tax cuts only alleviate things for a few months the way things are, whereas I’d much rather see them extend healthcare i.e. more free GP visit cards, lower the prescription cost cap and create more screening programmes than throw us a few bob that just evaporates anyway
RealDealMrSeal on
Thanks at least with this VAT reduction my coffee will still go up in price
clewbays on
If you looked at the tread from last year where they announced they were raising the bands. I’d imagine you’d see the same negativity as this tread where they are not rasing them. Probably with a lot of the same people complaining.
gideanasi on
Government should just change their name to Business Profit Before People
Keyann on
The VAT cut won’t be passed to the consumer so it will only benefit the owners of those businesses. The vintners lobby well, it must be said.
Keyann on
As I have gotten a bit older, I have come to the realisation that you are on your own, no one will help you. The state will take half your salary and give you the middle finger in return. Cynical maybe but the only way out of this for individuals is to earn more and put yourself in a position where you are insulated financially from all the bullshit.
5u114 on
FFG don’t need to bribe the plebs for any election votes this year.
A-Hind-D on
I wouldn’t have expected this given the lack of conversation on it in the lead up.
Last time income tax was raised was a few years ago and I recall pascal and Leo mentioning that any change to it would take time and planning to implement for the systems alone.
I’m for another band between the 20 and 40%, but where that falls is hard to nail down
Reasonable-Food4834 on
Say it with me folks: MAX. OUT. THE. PENSION.
hmmm_ on
I voted for this government so I’m to blame, but this would be shameful. A tax increase on workers. To fund 10 billion thrown into the black hole of government spending and hundreds of millions being given to big businesses. And kites being flown about effectively means-testing child benefit, along with hundreds more millions given to NGOs to compete with people trying to buy houses. It’s indefensible, it’s a giant “fuck you” to people who work and pay taxes.
hollywoodmelty on
The economy is doing great not good enough to do anything for the peasant but we all got our pay rises and are well looked after so what the problem ffg
gowangowangowan on
There will be a lot of increases to social welfare though. I’m sure there will be no shortage of people claiming FFG hate poor people and only look after the rich…
cavemeister on
A rate cut to hospitality is not going to see people returning to the pubs in their droves. 7 euro pints will still be 7 euro post budget.
22 commenti
No change in bands or credits is, in effect, a tax increase – as wages rise in line with inflation, failure to move the bands drags more people into the net in real terms. All so we can pay for a VAT cut for one particular sector of the economy.
Shock horror, no election to buy so ye are on yer own lads.
It’s not an election year so they were never going to. That rate cut to hospitality is a bad move.
If only they wouldn’t waste tax money so badly… Cough cough bike shelters, IPAs, certain hospital etc
Ye voted for these, remember that.
It doesn’t have to be this way. Remember that they are making choices when they try to tell you that problems are outside their control and nobody could do better.
Because they are still planning tax cuts, just not for you. The tax cuts are for business owners as part of their [“solemn promise”](https://www.irishtimes.com/business/economy/2025/06/16/donohoe-warns-national-economic-dialogue-on-tariff-threat-to-economy/) to reduce VAT for hospitality.
Promises made during an election are solemn when made to business. Is €200 per month childcare solemn? Is increasing the supply of housing?
They could instead lower taxes on workers or hire the people we need to deliver public services. According to their own fiscal watchdog:
>As of 2025, reducing the VAT rate from 13.5% to 9% would cost €0.87 billion for a full-year (0.27% of national income), equivalent to cost of increasing the standard rate income tax bands by €3,000, hiring 11,400 nurses or 7,800 teachers.
https://www.fiscalcouncil.ie/vat-rate-changes-and-pass-through-2/
Middle class gets squeezed again to pay for everything.
In other words: now that the price of butter and a plank of wood have doubled it’s a tax increase.
An example being if someone earns 50K and spends 95% of what they earn.
A 2% salary increase & 2% inflation means they are worse of by €174 a year.
Honestly I’d rather that because tax cuts only alleviate things for a few months the way things are, whereas I’d much rather see them extend healthcare i.e. more free GP visit cards, lower the prescription cost cap and create more screening programmes than throw us a few bob that just evaporates anyway
Thanks at least with this VAT reduction my coffee will still go up in price
If you looked at the tread from last year where they announced they were raising the bands. I’d imagine you’d see the same negativity as this tread where they are not rasing them. Probably with a lot of the same people complaining.
Government should just change their name to Business Profit Before People
The VAT cut won’t be passed to the consumer so it will only benefit the owners of those businesses. The vintners lobby well, it must be said.
As I have gotten a bit older, I have come to the realisation that you are on your own, no one will help you. The state will take half your salary and give you the middle finger in return. Cynical maybe but the only way out of this for individuals is to earn more and put yourself in a position where you are insulated financially from all the bullshit.
FFG don’t need to bribe the plebs for any election votes this year.
I wouldn’t have expected this given the lack of conversation on it in the lead up.
Last time income tax was raised was a few years ago and I recall pascal and Leo mentioning that any change to it would take time and planning to implement for the systems alone.
I’m for another band between the 20 and 40%, but where that falls is hard to nail down
Say it with me folks: MAX. OUT. THE. PENSION.
I voted for this government so I’m to blame, but this would be shameful. A tax increase on workers. To fund 10 billion thrown into the black hole of government spending and hundreds of millions being given to big businesses. And kites being flown about effectively means-testing child benefit, along with hundreds more millions given to NGOs to compete with people trying to buy houses. It’s indefensible, it’s a giant “fuck you” to people who work and pay taxes.
The economy is doing great not good enough to do anything for the peasant but we all got our pay rises and are well looked after so what the problem ffg
There will be a lot of increases to social welfare though. I’m sure there will be no shortage of people claiming FFG hate poor people and only look after the rich…
A rate cut to hospitality is not going to see people returning to the pubs in their droves. 7 euro pints will still be 7 euro post budget.