Analysis: Government may tout tax cuts but has delivered a stealth rise

Rising wages mean we will need real tax reform, Ibec’s chief economist argues

Despite apparent cuts, the share of workers’ incomes that is actually paid in income tax, USC and PRSI has increased from 27 per cent to 29 per cent. Picture: Fergal Phillips

Many people don’t notice it, but in most years during the past decade, the share of your earnings you pay in income tax, USC and PRSI increased. This can happen even in years where income tax ‘cuts’ are announced on budget day. A cumulative €3.5 billion of income tax cuts have been announced in budget speeches over the past five years.

Despite these apparent cuts, the share of workers’ incomes that is actually paid in ...