Budget 2015 will be delivered by Minister Michael Noonan on Tuesday October 14 next. While the final Budget package is still in the process of negotiation, the Taoiseach has indicated that income tax reductions are on the cards for low and middle income earners. He could do this by reducing the marginal rate of tax / USC or by widening the 20% rate band. Currently the top rate of tax is 52% or 55% which is made up of income tax (41%), PRSI (4%) and Universal Social Charge (7% or 10%).
Minister Noonan has also committed to there being no new austerity measures in the Budget. Other potential tax measures which may be communicated on Budget day include the removal of the 80% windfall tax from the tax code and also confirmation of the expiry of the capital gains tax exemption for property investors at the end of the year. The implementation of both measures could go some way to address the current housing shortage in Dublin. It remains to be seen as to whether there will be any changes to the corporation tax regime following recent scrutiny from the EU Commission.