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#Budget2016 - The promises versus the reality

Yesterday, Michael Noonan and Brendan Howlin took to their feet and revealed their Budget plans f...
Newstalk
Newstalk

11.14 12 Oct 2015


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#Budget2016 - The promises ver...

#Budget2016 - The promises versus the reality

Newstalk
Newstalk

11.14 12 Oct 2015


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Yesterday, Michael Noonan and Brendan Howlin took to their feet and revealed their Budget plans for 2016.

But did they deliver on all the promises that they've made?

Here's what they said would happen and what actually happened.

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The Promise: No end to Universal Social Charge:

Michael Noonan has hinted that the Universal Social Charge (USC) might never be abolished.

The Minister says the charge brings in too much money - and that it's easier to change than income taxes - it seems the 'Social Charge' is here for good.

The Reality: Well, the Universal Social Charge is still around! 

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The Promise: But there will be a cut...

Workers earning under €70,000 will have their USC cut in the budget.

That has been guaranteed by Enda Kenny - he says income taxes will go even lower in the Budget next year. Mr Kenny indicated at the Dublin Chamber of Commerce dinner last week that this is the first of three years of tax cuts for workers - if Fine Gael stays in power.

The Reality:  USC changes bring marginal tax rate to 49.5% for all earners under €70,044. USC Rates were cut from 1.5% to 1%, from 3.5% to 3%, from 7% to 5.5%. Around 42,500 workers will be removed from paying USC completely

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The Promise: The Budget will focus on the middle-earners

The Taoiseach said the Budget will focus tax cuts on those earning between €30,000 and €70,000.

He says these earners are the "hard-pressed middle", and will be the focus of government help in the budget.

The Reality:

  • PRSI changes for the lower paid, meaning more net cash for those on the minimum wage - change of bands on employer's PRSI from €356 to €376.
  • Free childcare from age three to five and a half, or until start of primary school
  • 8,000 childcare places to support parents in low paid employment
  • €3m being provided to develop afterschool in school buildings.
  • Child Benefit to go up by €5 to €140 next year
  • GP care to be extended to under 12s next year (subject to negotiation with doctor representatives)

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The Promise: It will be fair and socially just

The Finance Minister Michael Noonan says the next budget will be economically smart and socially just.

Mr Noonan has warned that this will not be a pre-election giveaway.

He is insisting he will stick to the rules so that spending increases and tax cuts will amount to somewhere between €1.2bn and €1.5bn - although some economists have argued that up the €3bn will actually be pumped into the economy though expansionary budgetary decisions in 2015.

The Reality: With tax cuts, childcare, funding for the public service and reduction in the USC, you could argue that this is certainly a little more socially just. However, many will argue that there was no discussion on rent or enough done for those who are homeless.

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The Promise: An increase in the Christmas bonus

The Tánaiste and Social Protection Minister Joan Burton has revealed plans for an increase in the Christmas bonus for social welfare recipients and pensioners.

Ms Burton says while they have limited funds, but this is a priority. She has also denied it is a push for votes.

"It's actually about improving the well-being of pensioners, and giving them in particular some extra spending around Christmas time", she told Newstalk Breakfast.

The Reality: The welfare Christmas bonus restored to 75% of former total

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