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Varadkar 'not given up' on new tax band for middle-income earners

Mr Varadkar has said there will be tax cuts for workers when the budget is announced next month
Sean Defoe
Sean Defoe

13.16 19 Sep 2023


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Varadkar 'not given up' on new...

Varadkar 'not given up' on new tax band for middle-income earners

Sean Defoe
Sean Defoe

13.16 19 Sep 2023


Share this article


The Taoiseach Leo Varadkar said he has not given up on introducing a new tax band for middle-income earners.

In advance of the last budget Mr Varadkar was calling for a new 30% rate of income tax to ensure people did not hit the highest rate of tax on average salaries.

Speaking in in New York, Mr Varadkar was asked if he has given up on that idea this year.

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"I haven't, but I don't anticipate it's going to be in this budget," he said.

"A lot of work would have to be done for it to be put in place, and the Revenue have given us a report - which you've probably seen - that talks about new IT systems and payroll systems and a very long lead-in time."

Mr Varadkar said there will be tax cuts for workers when the budget is announced next month.

"We started reducing income tax and USC back in 2014; somebody who earns €40,000 or more now pays €3,000 less in income tax and USC than they did in 2014," he said.

"This is an area where I feel we've really made a lot of progress, and I want us to make more progress in this budget - particularly now because people are getting pay increases across the economy, because prices are rising.

"I don't want them losing half, or more than half of that, on income tax, USC and PRSI," he added.

The United Nations General Assembly opens in New York on Tuesday, with dignitaries from more than 190 countries attending.

All three coalition party leaders are in the US for the event.

The big guest is Ukrainian President Volodymyr Zelenskyy, who is seeking continued support in his country's fight against the Russian invasion

Taoiseach Leo Varadkar with UN Secretary-General António Guterres in New York City Taoiseach Leo Varadkar with UN Secretary-General António Guterres in New York City. Image via X/@LeoVaradkar

Ireland's national address is due on Friday but the three coalition party leaders have plenty on their plates today including bilaterals with a number of world leaders.

On Monday evening, Taoiseach Leo Varadkar met the UN Secretary-General António Guterres and it is expected there will be a declaration in the key Sustainable Development Goal summit.

Ireland has been co-hosting the summit with Qatar, hoping to get agreement to push 2030 targets very firmly back on track.

Main image: Main image: Taoiseach Leo Varadkar speaking at the United Nations in New York City. Image via X/@LeoVaradkar

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Antonio Guterres Income Tax Leo Varadkar Middle Income Earners Prsi Sustainable Development Goal Tax Band USC Varadkar Volodymyr Zelenskyy

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