Higher tax rate could see gap in households widen

The proposed higher tax rate of 48% for people earning in excess of €100,000 could result in the gap between single income and dual income households widening.

An analysis run by www.taxback.com show the take home pay of the average single income family earning €120,000 per annum would drop by €117 a month to €5,906 whereas the average dual income married couple, with one earning €40,000 and the other €80,000, would see their take home pay remain unchanged.

Christine Keily of taxback.com, said the higher tax rate would see a single earner family hit harder than a dual earner family bringing home the same gross pay. The difference could be up to 18%.