Government ‘is pushing workers into higher tax band’

THE Government was accused of taxing workers by stealth yesterday after it emerged some 127,000 more people are paying tax at the highest rate than in 2002.

This includes thousands of people earning the average industrial wage, which is estimated at €29,300. Approximately 32.6% of all workers paying tax do so at the 42% rate, compared to 26.7% who did so two years ago.

The increase in those paying at the higher rate was blamed on the Government’s refusal to widen the tax bands in line with inflation, or index-link them, in the past two budgets.