Are the lowest paid or those on social welfare to be hit again, or is this just Newspaper talk. Same paper Ryanair make Euro3 £bn no tax bill
Finance Minister Brian Lenihan has asked his officials to look at the possibility of gathering taxes from the 50pc of workers who currently pay no income tax -- although they are being hit by the income levy.
A government source last night said it was no longer practical to have so many workers outside the tax net at a time when it was impossible to raise income tax rates further.
The widening of the tax base is part of Mr Lenihan's plan to cut the €20bn Budget deficit by a further €3bn this year through a combination of cuts to capital projects, current spending and extra taxation.
He has already spoken about his wish to introduce a "universal social contribution" which would wrap together the existing health levy, income levy and employee PRSI.
And he has said it will be "paid by everybody" -- raising the prospect that even those on social welfare will have to make some contribution.
But the opposition parties warned that bringing more low-paid workers into the tax net could worsen their position relative to those on social welfare.
Those earning less than €18,300 per year pay no income tax but have to pay the income levy of 2pc.
There are currently almost 700,000 private sector workers and around 115,000 public sector workers earning less than €20,000 annually.
- Michael Brennan Political Correspondent
Irish Independent
Finance Minister Brian Lenihan has asked his officials to look at the possibility of gathering taxes from the 50pc of workers who currently pay no income tax -- although they are being hit by the income levy.
A government source last night said it was no longer practical to have so many workers outside the tax net at a time when it was impossible to raise income tax rates further.
The widening of the tax base is part of Mr Lenihan's plan to cut the €20bn Budget deficit by a further €3bn this year through a combination of cuts to capital projects, current spending and extra taxation.
He has already spoken about his wish to introduce a "universal social contribution" which would wrap together the existing health levy, income levy and employee PRSI.
And he has said it will be "paid by everybody" -- raising the prospect that even those on social welfare will have to make some contribution.
But the opposition parties warned that bringing more low-paid workers into the tax net could worsen their position relative to those on social welfare.
Those earning less than €18,300 per year pay no income tax but have to pay the income levy of 2pc.
There are currently almost 700,000 private sector workers and around 115,000 public sector workers earning less than €20,000 annually.
- Michael Brennan Political Correspondent
Irish Independent
