‘Squeezed middle’ to gain from tax changes amid Central Bank warnings

The “squeezed middle” is set to benefit from tax band changes in next month’s budget, amid Central Bank warnings that tax rises may be required to rein in an overheating economy.

Low and middle-income earners should see increases in their take-home pay, with plans announced to raise the threshold at which earners pay the higher rate of tax.

Finance Minister Paschal Donohoe confirmed the move during a speech yesterday in which he also announced plans to merge the universal social charge with PRSI.