Budget 2025 (or is it 2026 )

Sam Russell

The media are banging on how taxpayers are losing out because the tax bands are not changing, and inflation is causing them to pay more tax.

This is not so, because only those who get a pay rise will pay more tax on the increased wage. Those on minimum wage get more money because there was an increase on that wage, plus a movement on taxes to move them away from their now increased wage.

There was heavy lobbying by those without children because their beneficiaries cannot avail of the €400k exemption for children following the demise of their parents.

Well, it is the beneficiary that pays the tax, and it is a lifetime limit. So it does not apply to those without children, it applies to their beneficiaries. And if it did apply, they would use up the allowance they might benefit from when their own parents pass on.

Off course, it is really a gift tax, not an inheritance tax.

Of course, the Gov should have declared a housing emergency, and looked for powers to get building social houses for the homeless, and affordable houses for sale to those who need them.

There were lots of council houses built in the 1950s and 1960s when the nation did not have a bean.

Rocket_GD

https://www.boards.ie/discussion/comment/123895066#Comment_123895066

I think it's more "the squeezed middle" as they call it are the one's who are losing money and this is a massive section of workers.

Personally due to this budget, the non movement of tax bands and inflation myself and my partner will be poorer unless we get even a half decent wage increase, which won't happen. We are in the private sector and although are jobs are rock solid the company has said not to expect much at all.

Our wage increases won't match inflation and getting no relief of the adjustment of tax bands is an issue for a lot of people.

Sam Russell

https://www.boards.ie/discussion/comment/123895077#Comment_123895077

I sympathise with you, but the budget has not reduced your income, but it has not compensated you for any inflation that might happen next year. Now, the budget could have gone some way to help, but that is to compensate with increase costs, not loss of income.

It would have been better if some move was made. Certainly better that giving a VAT cut in 8 months time.

Rocket_GD

https://www.boards.ie/discussion/comment/123895309#Comment_123895309

Look I’ve no strong feelings either way about the budget, it’s exactly what I expected it to be with this government, hence why I’d never vote for them.

The budget hasn’t reduced our income but it has reduced the value of our income.

Not raising the tax bracket in line with inflation automatically makes a large cohort poorer compared to last year unless pay rises are at least 1% above the inflation rate.

Sam Russell

https://www.boards.ie/discussion/comment/123895475#Comment_123895475

You are right, but it is not your income that has suffered, it is you household expenses that have risen by inflation.

Rocket_GD

https://www.boards.ie/discussion/comment/123895506#Comment_123895506

I’ve never said that my income has suffered, the value of the income is what has suffered.

If the government agree that there is going to be a certain % of inflation (as they have) then this % should be factored into the tax brackets of the budget. If it isn’t then yes, I, and thousands of others are technically paying more in tax, while the value of our income decreases.

antimatterx

https://www.boards.ie/discussion/comment/123895066#Comment_123895066

Most people will get a payrise or they will leave for a larger pay rise.

Fann Linn

https://www.boards.ie/discussion/comment/123895506#Comment_123895506

The terms used are 'real' and 'nominal' wage.

If you get paid €1800 a fortnight that equates to €46,800 pa ,exactly what it says on your payslip, that's your nominal wage.

Your real wage however expresses what that €1800 per fortnight, when inflation is taken into account, currently 2.7% , is actually worth.

Taking all of the above into account your real wage works out at €1753 per fortnight or €45570 pa, a reduction of approx €47 every two weeks when your nominal wage of €46,800 is divided by 1 + 0.027.

So in effect, although your payslip says €1800 a fortnight, your 'real' purchasing power is approx €1753.

Idbatterim

Ireland’s squeezed middle and stealthy wealthy pick up the tab for wasteful spending

https://www.irishtimes.com/opinion/2025/10/11/cliff-taylor-irelands-squeezed-middle-and-stealthy-wealthy-will-pick-up-the-tab-in-years-ahead/

A good article... he mentions now, how effectively the only demography it's politically easiest to hammer, is working people. I'd be whacking up motor tax, congestion charge, coffee cup levy, in fact, increase the vat back to full on electricity.

Next budget will be very interesting... the huge amount being spent on infrastructure is essential, but years of delays, has meant its ballooned in cost, totally wreckless, obscenely bad bad government. The working people are paying an obscene price for it...

More and more of our young, will leave the country. You get an obscenely bad deal here, you're either on rubbish money with an obscene cost of living or you earn decent money and are hit with worldclass taxes to live in a second world country...

Open goal here for a new party.... sorry, a new party doing the opposite of anything those idiots in the Dail are doing...

Simply index welfare and income bands to inflation. This yearly charade farce needs to end. The UK already do this, loads of other countries do to....

Hoboo

https://www.boards.ie/discussion/comment/123895506#Comment_123895506

….and as a result you have less surplus income. Ergo, income has suffered.

Mr. teddywinkles

https://www.boards.ie/discussion/comment/123895506#Comment_123895506

Indirect Taxes. Carbon, property up? Im sure theres more. Not even taken in inflation costs.

Sam Russell

https://www.boards.ie/discussion/comment/123896425#Comment_123896425

That is correct, but it is not income that has suffered if you still get the same income. It is spending power. Your expenses have risen. Inflation steals from everyone.

I am complaining at how all the media say income is reduced when it is not. It is expenditure that rises because of inflation, and money drops in value.

How one treats that reduction is the real problem. The very poor go without heat or food. The next level up, go from premium tp yellow pack. The next cut down on their second or third holiday. After that, they complain, but carry on as before.

However, there was some succour for the very poor with SW increases.

Idbatterim

What very poor are there in Ireland? Poor with their choices and obscene inability to handle money and budget ? Welfare in other more progressive, far better run eu countries is far less than here, people aren't dying AND their government and population, obviously support this level of welfare…

Fanny Wank

@Sam Russell PRSI increased so no, I will not get the same (net) income (awaiting pedantry to try negate my point this increase was already announced but govt did nothing in *this* budget to offset). It will be lower. Yes my pre tax income is unaffected whereas a dole recipient's nominal "pre tax" income increased. In any case much inflation is driven by govt policies on energy, cost of business etc etc

"However, there was some succour for the very poor with SW increases." - plenty of jobs out there if the unemployed are unhappy with their income. I presume you only meant the unemployed as pensioners consistently have the lowest rates of poverty, at risk of poverty and deprivation so can't with a broad brush be referred to as "very poor" (yes I know there are other class of Social Welfare recipients also)

As I said previously Id have no issue with taxes not being cut had social welfare not increased and government expenditure not increased by more than expected inflation in 2026 (though I'd rather they looked to eliminate waste, look for efficiencies and reduce spending in real terms)

Hotblack Desiato

https://www.boards.ie/discussion/comment/123895596#Comment_123895596

If you're in the public sector you're tied into a shite 2% deal, less than inflation and the last deal was well below inflation

Teachers, nurses, paramedics, etc etc are leaving for better pay alright but that's not a good thing for the country.

0ph0rce0

https://www.boards.ie/discussion/comment/123896785#Comment_123896785

It's the same everywhere for as long as I can remember. I've worked form bar work to multinationals. Every year the same oul shite, something like 1% or stupid number like a 1.6% pay rise.

Mr. teddywinkles

https://www.boards.ie/discussion/comment/123896996#Comment_123896996

Half it gone to government coffers too

Mr. teddywinkles

https://www.boards.ie/discussion/comment/123896629#Comment_123896629

Id consider a different type of poor. If your out of work a couple of weeks your in financial difficulty straight away. Id say a lot of people fit in that category.

Idbatterim

Donohoe rules out automatic income tax indexation: It must remain a ‘political decision’

https://www.businesspost.ie/politics/donohoe-rules-out-automatic-income-tax-indexation-it-must-remain-a-political-decision/

Wasters !Won't index for workers... but no problem increasing welfare more than it would have been, if we had indexation! Looooool !!!

harryharry25

https://www.boards.ie/discussion/comment/123903502#Comment_123903502

Have to get the money to fund all this extra money McDonalds, Starbucks and the lads are going to get out of the VAT cut

That's before we get into giving €640Million vat cut for houses and apartment's that are already built which we are told was to help more houses and apartments getting built

combat14

https://www.boards.ie/discussion/comment/123896785#Comment_123896785

and thats before nearly two thirds of any extra income earned is taken in paye, prsi, usc, income levy - not much incentive for workers