Bankers and Fianna Fail pile on the misery

Paychecks Savaged by the Budget

Fianna Fail and Bankers pile on the misery

132,000 extra people now pay income tax on low wages

An extra 84.000 people are now paying tax at the higher 41%.

A single person in private sector on €45,000 per year and paying €3,300 in pensions have seen take-home fall by €1,101 – down by 3.4%. This is due to a 10% reduction in tax credits and a widening of the tax base.

A single person in public sector will be even worse off losing €1.053 – down 3.4%

A married couple with three children and one income of €75,000 in the private sector paying €1815 into a pension will see their income drop by €1,815 or 3.6%, They will lose an extra €40 per month from reduced children’s allowances – a drop of €2,295 in total.

The same family in the public sector will see a reduction of €1,705 plus the children allowance totalling – €2,125

Pension contributions are not deductible for PRSI purposes. The universal social charge top rate of 7% is likely to apply to money used for pension contributions

Big stories of struggle in our time.

Mick from Shanliss tells us “I earn €34,500 a year and am hit for €36 per week.”

Jacinta from Hampton Wood says “I am down a total of €288 this month between wages and child benefit, absolutely ridiculous,”

Mary from Whitehall says “My take home pay is now back to June 2006 levels, down 17 per cent since November 2008,”

John in D11 wrote on e-mail “January payslip arrived this morning €82.42 monthly reduction. Ouch,”

A woman working in a Dublin university was angry to see that she will be worse off to the tune of just under €200 a month this year. Her partner, who has yet to be paid, is likely to be similarly hit. This means the couple, who have two young children – a further deduction of €240 a year – will be down almost €5,000 this year, a large financial hole to fill, by any measure.

Fiona from Dublin is a public servant. She gets paid every two weeks and was shocked when she got her first pay cheque this year. The changes have hit her very, very hard. She is worse off to the tune of just under €190 a month. “I’m a full-time working single mum and was struggling before. I’ll probably go under now,” she says. In the short term, things could scarcely look much bleaker for her. As a medical card holder, she was exempt from the health levy and had a single-parent tax credit and an incapacitated-child tax credit – her eight-year-old son has autism. She is now being hit with the full universal service charge of 7 per cent and has seen the tax credits cut.

“As a public servant, I’ve been hit doubly hard. I lost around €250 a month in the cuts two years ago and now I’m down €180 a month plus a further €10 in child benefit.”

In total, her net salary has fallen by €440 a month over the past two years. That would be financially painful for most people with a very good income to cope with; it’s even harder for this woman who earns €39,000 a year.

“I was really struggling before this and, some months last year, I couldn’t afford to pay my mortgage. Other months, other bills went unpaid and all of this debt is mounting up.”

She missed her mortgage payments for five months last year. She can’t even borrow money from her credit union as she has a loan outstanding. There are very few areas in which she can cut back. She knows that, this year, there will be no holidays, very few nights out and no new clothes for her or toys for her son.

“It really is impossible and I don’t know how I am going to make it. We are living hand-to-mouth and don’t have anything close to an extravagant lifestyle.

“The thing that really bugs me is that I would actually be better off on the dole but I really want to work.”

When she read about the Budget in December, she says she was shocked but thought she would be down about €10 or €20 a week. “I think they have hit the vulnerable very hard – and to cut back on the incapacitated-child tax credit is the lowest of the low.”

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