St Vincent de Paul warns of tax net trap

June 02, 2005 14:49
The Society of St Vincent de Paul today warned the Government of the danger of minimum wage earners falling back into the tax net… The minimum wage was raised from €7 an hour to €7.65 an hour on May 1. This increase is subject to tax at 20%.

‘The last Budget effectively took just over 66,000 people on the minimum wage out of the tax net as tax credits were increased’ said Professor John Monaghan, Vice President of the organisation.

He said that while the new minimum wage of €7.65 hour is welcome, the tax credit increase in the last Budget was not sufficient to take account of the planned minimum wage increase now effective.

He says it will now push over 37,000 people back into the tax net again.

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