Cowen faces income tax challenge

FINANCE Minister Brian Cowen will have to bring income tax relief of €750 million a year to eliminate the 15% in stealth income taxes imposed by his predecessor, Charlie McCreevy, Ulster Bank economist Pat McArdle calculates.

The unchanged tax bands over the last two years will effectively increase the income tax take by 15% in 2005, if Minister Cowen maintains the status quo.

The tax bands should have been indexed to wages annually to ensure a consistent percentage tax take.