McGrath: New 30% tax rate will be 'examined properly' in 2023
Said 'the Out Naoise Mcgrath Not Set For Been Culhane To Had picture: Michael Time' 2024 Appropriate Budget 2022 Priorities
The Government will examine a new 30% middle-income tax rate in 2023, but the finance minister has refused to be drawn on whether he would support its introduction.
The new rate had been mooted ahead of Budget 2023 but was subsequently shot down, largely by the then public expenditure minister Michael McGrath, with the Fianna Fáil TD bristling at the proposal.
Instead, a widening of the tax bands was introduced, with the higher rate of tax not being applied until a person earned €40,000.
Mr McGrath told the the idea of a 30% rate will be "examined properly" in the new year, saying he had felt that 2022 was "not the appropriate time" to set out priorities for Budget 2024.
He has now spoken to finance officials regarding the plan and expects to discuss the proposal with the coalition leaders in the coming months.
While he said there is "no problem" with looking at new ideas, Mr McGrath pointed to the Programme for Government's commitment to widen the tax bands.
"But you have to know exactly what it would cost," he said.
"We now have an entry point at a higher rate of €40,000 for a single person. And then what about the people who are earning less than €40,000 to ensure that they get benefit from a tax package as well? The obvious way to do that is through tax credits."
Taoiseach Leo Varadkar previously indicated his desire to ensure that workers earning less than €50,000 do not pay tax at the higher rate, but said he is "not hung up" on the 30% proposal.