Budget likely to hit middle and low earners with tax increases

INCOME tax rises for low and middle earners are looking more likely in December’s draconian budget after Finance Minister Brian Lenihan said it would be “unrealistic” to leave them untouched.

The minister said high living standards reached during the Celtic Tiger years have been “temporarily lost”, but tough measures will restore prosperity in the future. The country has to take one step back in order to go forward, Mr Lenihan said, after announcing that cuts amounting to €15 billion are in store over the next four years.

“Even though these measures will be painful, we will continue to enjoy most of the substantial increases in living standards that were gained and secured in the past decade and they will provide the basis for regaining what we have temporarily lost.”