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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Squeezed middle tax package

Summary

Deputy Dillon urged targeted budget measures for middle-income workers and families who miss out on supports but face rising costs. The Tánaiste said a tax package will be part of the October budget and should be aimed at middle-income earners, while also considering childcare costs.

I raise an issue facing thousands of middle-income workers and families. This cohort, the so-called squeezed middle, earn too much to qualify for many State supports and pay a larger proportion of their income at the higher tax band. The Government needs to focus on targeted measures to cut rising costs and increase supports for the so-called squeezed middle. It is crucial that we now recognise the change in costs facing families across Ireland, whether in energy bills, in the supermarket trolley or at the pumps. I ask the Tánaiste to ensure the next budget package will specifically consider the squeezed middle families and the challenges they face. It should include a tax and welfare package and universal supports such as subsidies for childcare and public transport and lower college fees, to ensure no family has to choose between vital services and to lessen the burden on the squeezed middle due to rising costs.

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Leo Varadkar The Tánaiste Fine Gael

These are budget matters and decisions will be made on them in the run-up to the budget in October. The programme for Government provides for a tax package every year, agreed by all three parties in the coalition. Therefore, there will be a tax package in the forthcoming budget. We just have to decide how best to do it. It should be targeted at middle-income earners, as the Deputy has said. There are other things we can do, such as reducing childcare costs, which middle-income families spend a lot of money on. We are an outlier internationally in that regard. We need to increase the universal subsidy for childcare and bring down those costs. Doing so would also have an economic benefit in that it would free up more people - particularly but not exclusively women - to enter the workforce, if they choose to. One area the Minister for Further and Higher Education, Research, Innovation and Science is focusing on is reducing the cost of putting a child through college. He has some good proposals in that regard. For people on middle incomes who do not qualify for a grant, when the registration fee and accommodation costs are added up, it is a huge burden.

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