Mandate: Govt targeting lower and middle-income workers

Trade union Mandate has accused the Government of targeting workers on lower and middle incomes in the 2012 Budget.

The union’s General Secretary, John Douglas, said increases in VAT, carbon tax and other stealth taxes combined with cuts made to welfare payments such as Child Benefit, represent a ‘double whammy’ for lower income workers.

“This afternoon the Government confirmed a number of stealth tax increases that will disproportionately affect those on lower incomes. VAT is going up by 2% – which will adversely affect business in the retail trade where our members work – and the price increases brought about by this change will hit those on lowest incomes the hardest as they spend nearly all of their incomes," said Mr Douglas.

"In addition, the introduction of the annual household charge, the increases in carbon tax and fares for public transport will hit many people who are already struggling to heat their homes and travel to and from work.”

Mr Douglas said that in addition to disproportionately increasing its tax take from lower paid workers, the Government has failed to sufficiently tackle the unfair nature of the Universal Social Charge (USC).

“Mandate acknowledges the fact that the Government has removed workers earning up to €10,036 per annum from the USC net – an increase from the previous €4,004 threshold," he said.

"However, we believe they should have gone much further and set the threshold at €16,016 per year or €308 per week. Unfortunately, the current Government has missed the opportunity to right the wrong done by the last Government and give lower paid workers a significant break at this difficult time.”