Main parties tax position ahead of the election

There's a general election this Friday. Given the Irish electoral system, it is likely there will be a coalition government but one of three parties will be vying to be the main government party. They are Fianna Fáil, Fine Gael and Sinn Féin.

Each party has published a manifesto detailing what they will do if they form the next government. I have laid out their promises in relation to taxes and personal finance.

Fianna Fáil

1. Increase the State pension to €350 a week.
2. Increase entry to the higher income tax rate to €50,000.
3. Cutting the lower rate of USC from 3% to 1.5%
4. Abolish the 3% USC surcharge for the self employed who earn over €100,000.
5. Increase tax credits by at least €100 annually.
6. Examine reducing Capital Gains Tax.
7. Increase and adjust the Capital Acquisition Tax thresholds in each Budget.

Fine Gael

1. Increase the entry point to the higher tax rate by at least €2,000 each year, ensuring people earning €54,000 will not be subject to the higher rate of tax.
2. Increase the Personal, Employee & Earned Income credits by €75 annually.
3. Raise the entry point for the USC 3% band to €40,000 and the 8% band to €75,000.
4. Abolish the 3% USC surcharge for the self employed who earn over €100,000.
5. Aligned the personal income tax credit with the employee tax credit.
6. Increase the thresholds under CAT to €500,000 for Group A, €75,000 for Group B and €50,000 for Group B.

Sinn Féin

1. Abolish USC on the first €45,000 that you earn.
2. Abolish local property tax.
3. An additional 3% tax for those earning over €140,000.
4. Abolish stamp duty for first time buyers on properties up to €450,000.
5. Increase tax credits by €200.
6. Increase the standard rate band by €4,000.
7. Removal of tax credits for those earning over €100,000.
8. Reduce pension relief earnings limit (currently €115,000).
9. Reduce pension Standard Fund Threshold (currently €2 million and to be increased to €2.8m by 2029 under Finance Act 2025. While their manifesto doesn't give an amount, Sinn Féin have previously said they would reduce it to €1.5 million).
10. Reform Capital Acquisition Tax (their Budget proposal was to increase it to 36%).

Steven Barrett

25 November 2024