Govt planning 3% income levy on high earners

The Government is reportedly set to introduce a new 3% levy on incomes above €250,000 as part of its efforts to plug the massive gap in the public finances.

Reports this morning say the new levy will be included in the Finance Bill due to be presented to the Dáil on Thursday.

The move is apparently designed to offset the effects of the Government's U-turn on its original plans for a 1% income levy on all workers and a 2% levy on incomes above €100,000.

The coalition was forced to exempt low-paid workers from the levy after unions warned that the new tax would undermine the latest national pay agreement.