‘Lining pockets of the rich’

The Government faced accusations of lining the pockets of the rich by cutting the top rate of income tax, but responded that the move will attract foreign investment and boost employment.

A key part of the Coalition’s first post-bailout budget is the decision to reduce the top rate from 41% to 40%, as was flagged in recent weeks.

The Coalition has also increased the standard rate tax band above which the top rate of tax is paid by €1,000 to €33,800.