Pay packets have shrunk further this week as Brian Lenihan’s latest round of tax cuts hit home, with the average family now paying €7,700 more tax compared to 12 months ago, Mayo Fine Gael TD John O'Mahony said.
“Hard-pressed employees on monthly salaries and their families are seeing further cuts in their pay packets this week as Brian Lenihan’s double income levy, pension levy and health levy hit home.
“The average family is now paying €7,700 more in tax since last October as a result of Fianna Fáil’s two emergency budgets. A one income family with one child under five and a mortgage is paying €4,600 more as a result of Brian Lenihan’s last emergency budget, on top of the €3,100 in new taxes and charges imposed last October. This represents a 12 per cent fall in income this year for a middle income family.”
Dep O’Mahony continued: “Instead of reforming Government and making long-overdue savings and reforms, Fianna Fáil chose to penalise taxpayers and their families in the last two budgets. Not only is this unfair, it will also damage the economy by taking money out of circulation.
“Fine Gael put forward a viable alternative budget last April with an emphasis on savings in day-to-day spending instead of tax increases. Fianna Fáil chose to ignore this and instead produced a budget with a major emphasis on higher taxes.
“Brian Lenihan has now indicated that he is gearing up to slash social welfare too, on top of his colleague Mary Hanafin’s decision to axe the Christmas bonus.
“Brian Cowen is presiding over one of the worst governments in living memory. Instead of taking the right steps to reform Government and get the economy back on track, his Ministers are penalising ordinary families. I would urge voters to register their anger with this Government at the polls next week.”
