According to Varadkar, next week's budget will include cuts to USC and income tax, along with help with rent and electricity bills, while plans for tax relief are also being drafted for homeowners, who have received huge increases in interest rates.
“I am pressing to have as generous a tax package as we can, it’ll be a combination of income tax and USC", Varadkar said recently. “One thing I want to do is reward work, and make sure that people keep money in their pockets".
When asked if the average Irish worker will be €1,000 better off following this budget, Varadkar added, “I think it’s fair to say if you add it all up for the average, middle income worker, it’ll be more than €1,000. That’s not just the tax package, that’s taking into account once-off measures".
“Because Fine Gael has been in government since 2014, the average person, let’s say you’re earning €45,000, pays about €3,000 in tax and USC. We want to build on that".
The Taoiseach also insisted that the poorest families will receive a "substantial" increase in the Increase for Qualified Child payment.
He explained, "I’d like to see that increase, because that’s one of the most effective ways that we can reduce child poverty".
Varakar did also state that elections taking place in the next 18 months to elect seats in the Dáil, Seanad, local councils, Europe and the Áras are in the ministers' minds as they put the finishing touches to this budget.
“It’s a factor that, of course, we take into account. We have, we’re politicians, we face the public and have to explain our decisions to them,” he said. “Every politician is aware of the political cycle".
