Labour wants standard rate tax band increased

THE Labour Party has proposed increasing the standard rate tax band to €37,000 so that fewer low and middle income families pay tax at the top rate.

Labour leader Pat Rabbitte said the Government had originally promised to ensure that only 20% of taxpayers would pay tax at the top rate of 42%, but the figure currently stood at 33%.

During yesterday’s launch of the party’s pre-budget submission, Mr Rabbitte accused the Government of recently re-stating these figures to allow it focus on top rate tax cuts for the wealthy and “fudge” the issue of putting the available money for tax relief into widening the bands and the credits.