WE’RE LESS THAN two weeks away from Budget day and while we might have a modest understanding of what will be included, some measures have yet to be hammered out before 1 October.

Earlier this week we asked our readers what measures they would like to see included in Budget 2025, which is set to be an €8.3bn package with €1.4bn allocated to taxation measures.

As was the case in recent years, a number of one-off measures will also be included – including energy credits, one-off child benefit payments and fuel allowances.

Speaking on Monday, Finance Minister Jack Chambers said that between income tax reductions, cuts to the Universal Social Charge (USC) and continued cost-of-living supports, the average worker will be €1,000 better off after the next Budget.

Minister for Finance Jack Chambers will announce the budget on 1 October. Alamy Alamy

Reductions in the USC will be a “central component” to Budget 2025, according to Chambers, and will target low-and-middle-income earners.

Cuts to the USC — which was initially meant to be a temporary measure when it was introduced in 2010 — were frequently mentioned by readers who contacted us after our call-out.

Approximately 15% of responses said they would like to see the charge scrapped or significantly reduced.

One reader said:

It was meant to be temporary … stop punishing us for Pete’s sake.

Budget 2024 included the largest change to USC in years, when the 4.5% tax rate for workers earning more than €25,000 was dropped to 4%. Fine Gael campaigned on a promise to abolish the tax during the 2016 General Election.

Another reader, who also wanted to see the tax abolished, said:

“I want politicians to stand by their promises. Fail to deliver, fail to keep your seat.”

Ireland’s ‘dishonest’ tax system has ‘significantly reduced real incomes’

One man who got in touch said that all the focus on the looming cuts to USC was taking the attention away from the debate about reforming Ireland’s tax system.

He said he wants to see significant changes to the current model and believes the tax system imposed by this Government is “dishonest” and has “significantly reduced real incomes”.

“Ireland’s marginal tax rate of 40% on incomes over €42,000 is exceptionally high,” he said — calling for “meaningful tax cuts for those earning between €42,000 and €60,000”. 

One reader wished for tax reform. Alamy Stock Photo Alamy Stock Photo

‘I worked hard all my life and I want to leave what I can to my children’

A number of people also wished to see cuts to inheritance tax, among them an 80-year-old man from Co Galway. 

“For me, the most important priority in the budget is to significantly reduce the burden of inheritance tax,” he said.

Having worked hard and paid all my taxes all my life, I want to leave my home to my children so that they can enjoy some financial security in their life as they grow older.

Some older readers voiced a desire to place as little burden on their children over their an inheritance. Alamy Stock Photo Alamy Stock Photo

Reforms for inheritance tax are being considered for this upcoming Budget, Chambers has confirmed. However, there has been some disagreement between Coalition leaders over the importance of alterations to inheritance compared to other taxes.

Lower rates of tax on family homes left in wills are being considered, the Tánaiste said earlier this summer. This would reduce the burden on those receiving the inheritance while still targeting those passing on significant amounts of wealth.

Another reader also wanted to see inheritance tax cuts in Budget 2025 for similar reasons.

“It seems mad that this tax is so high on money that has been earned and tax already paid on it. It’s essentially a double tax,” she said.

We are struggling to help our adult children get on the property ladder and this massive tax is impeding us doing that.

‘We must address matters other than tax’

According to one 35-year-old woman from Dublin: “While tax changes are great, the big things that I think need to be addressed are the cost of childcare and the healthcare system.”

This reader was just one of many who wished for more to be done in terms of childcare and hospitals, especially as the cost of such services can become a massive burden on young families. 

She continued: “My husband and I are very much middle earners, with a combined income of just €66,000 per annum. I’m now a part-time worker, due to the fact I couldn’t get a full-time childcare place for our daughter.

“We can’t claim any National Childcare Scheme funding as our childminder is unregistered, due to the red tape involved in becoming registered.”

Yesterday, it was announced that all childminders must be registered with Tusla by 2027 in an effort by the Department of Children to better regulate the safety and standards of facilities. This will also allow for parents to avail of additional allowances.

One reader told us that she cannot avail of childcare supports as her provider is unregistered. Shutterstock Shutterstock

“Our daughter was just at a development check up where they have queried if she might have an eye squint.

The nurse explained that she’s have to ‘exaggerate’ the severity of this to try to get us an eye clinic appointment before the year end. She’s two years old and we’re already being hit with waiting lists.

“While this is not urgent at all, I’d be happier paying the current level of tax in exchange for a more efficient health service.”

The woman also believes more should be done for housing, particularly using existing schemes. She told The Journal that the Help To Buy scheme should be extended to include the purchase of a second-hand home, in her view.

“Perhaps a tax refund should be used to retrofit the house, instead of just towards the cost price. When we purchased our house, five years ago, we couldn’t avail of Help to Buy, because even with it, the price of new builds was too high.

One woman wants the Help To Buy scheme to be extended or altered to cater to those who own older homes. Alamy Stock Photo Alamy Stock Photo

“We bought a 50-year-old house, but with a mortgage, childcare and all the other bills, it’s impossible for us to be able to do a good retrofit to make it more energy efficient, even with the SEAI grants available.”

The reader detailed that she is legally blind and, when choosing somewhere to buy, she had a limited choice as she is reliant on public transport and needs to be familiar with her surroundings.

Apple Tax should be spent on infrastructure

Just four readers had suggestions for what Ireland should do with the funds from the unpaid Apple tax money, which the top EU court ruled must be paid to the Exchequer last week.

On Wednesday, Taoiseach Simon Harris said the funds should be invested into the “future needs” of the country. All four readers said the funds should be put towards infrastructure.

“Infrastructure is a massive issue,” one reader said. “Get everyone working by spending Apple’s money on completing new projects — plus, give the apprentices a proper wage.”

A reader in her 40s from Co Cork would like to see more road and rail connections to and from the Rebel county.

Just four readers had ideas for how Ireland should spend the money from Apple and all suggested it be put towards infrastructure. Alamy Alamy

I would like to see motorways between Cork and Belfast, and Cork and Limerick as well as direct train links and fast speed trains between our major cities. Within our major cities I would like to see investment in Luas lines.

She adds that she would like to see the funds from Apple’s tax being put towards projects that will benefit citizens. Another reader — also in her 40s and from Cork — said such projects could include public transport links and improving water quality.