One-third paying higher tax rate despite Government vow

ALMOST one-third of taxpayers are still paying tax at the higher rate despite a Government commitment that only 20% should pay at the 42% rate, the latest figures reveal.

Finance Minister Brian Cowen disclosed this week that more than 658,000, or 31.9%, of income earners are now paying tax at 42%.

It means the Government has actually gone backwards in terms of a specific commitment in the 2002 Programme for Government to take 80% of income earners out of the highest band.