Third rate of tax for middle-income earners proposed

Middle earners who earn less than the average working wage but who pay the top rate of tax may be moved to a lower third rate of income tax, under plans being developed by the Government.

Junior Finance Minister Michael D’Arcy, in his first major interview since taking office, has said the squeezed middle have to be given a break in terms of how much tax they pay.

Speaking to the Irish Examiner, Mr D’Arcy said that a third middle rate of tax is being considered.