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THE SMALL-BUSINESS LOBBY has branded this year’s Budget as “uninspiring” for entrepreneurs and given the government a spray for continuing unfair tax measures against the self employed.
Irish Small and Medium Enterprises Association (ISME) chief executive Mark Fielding said the the tax system still discriminated against the self-employed, who paid more in taxes than the rest of the working population.
“So much for encouraging entrepreneurs,” he said.
“So much for last week’s policy document on entrepreneurship … so much for ‘making Ireland the best small country in which to do business’.”
Self-employed workers pay higher tax and PRSI contributions than company employees with those on low incomes slugged particularly hard compared to most wage earners.
At least most taxes are going down
But Fielding praised the government for trying to ease the tax burden on workers and he said the move would hopefully drive more spending and investment.
The top marginal tax bracket was cut from 41% to 40% in today’s Budget and Universal Social Charges were also reduced for the majority of workers.
Meanwhile, the Small Firms Association (SFA), which represents businesses with less than 50 employees, gave a general thumbs up the Budget – although it also called for discrimination against the self employed to stop.
Chairman AJ Noonan said the government’s measures should lift disposable incomes and would help small businesses get easier access to finance.
“The improvements announced to the Employment and Investment Incentive Scheme (EIIS) should assist small businesses by making it more attractive for private investors to invest in small indigenous business and get a tax write off,” he said.
Finance Minister Michael Noonan today announced individual companies would be able to raise up to €5 million each year through the incentive scheme, which offers tax breaks to business investors.
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What is the reason for the higher tax and USC for self-employed?
Probably because they only declare a fraction of their real earnings.
You get out there and try it then Patrice if it’s so easy. We’d all be fkn millionaires by your rationale.
Think budget is comical, in the context it was delivered, it’s probably the worst budget, it’s a nothing budget, with austerity still the main theme. This was FGs opportunity to deliver, but is probably their final nail in their political coffin. Thanks for the memories/scars Enda and Co.
self employed pay less tax than other European countries. Therefore the USC should be higher.
The budget is like taking a flight to a holiday destination and having two monkeys for a captain and co-pilot. You look forward to the holiday but you know deep down that getting there is unlikely.
according to the OECD, taxes on the self-employed are mostly higher in other European countries.
Its you’re facts won’t go down well here……
The small firms association gave the budget a thumbs up? Don’t make me laugh. There was NOTHING in this budget for the ordinary small business. SME’s have been struggling to keep people employed through years of austerity with help from noone. I’m mad as hell tonight at the lack of understanding or help from our government, Mark Fieldings comments and thumps up are an insult to small business struggling to survive and to the ones that have gone under, some having traded for 100 years.
Many SME owners I know of are reeling… trying to keep the mortgage paid on the foreign holiday home, the west of Ireland holiday home and the losses they incurred in speculation. Not much sympathy for alot of them.
Wet blanket of a budget. Why even bother creating such a non event
A call out charge for a 30 minute job usually costs € 90.00. At that rate, one might question how bad the self employed are.
You need to find a new hooker student. By any measure, that is excessive.
aren’t the self employed doing okay right now?
Maybe larger companies are but the small to medium sole traders never get a break and pay a fortune. They should be looked after; their keeping people in employment!
the recent index seems to suggest that the worst is over.
And you believe the figures? Open your eyes and see what’s really going on. It’s easy for any gobsh*te politician or consultant economist to make the figures look good. The reason these a***oles are still in power is because people like you actually believe their propaganda.
Its about time that the self employed and SMEs paid their fair amount of tax.
If there were ever a group who know how to avoid paying tax it’s them. They know every loophole that’s there whether it’s fair or not.
I don’t blame them I blame the government for having so many loopholes in the first place.
The slightest hint of an increase in anything is met with the same response every time “it will cost jobs”. It would be more in their line to pay a fair days pay for a fair days work and stop moaning.
Yeah these are often the people using job bridge instead of employing people.
The only way this budget helped me is my USC dropped by 0.5%. I think I’m getting something like €20 extra next year. They’re not getting that €20 for water anyway
That’s ok… Someone else will pay your share, right?
USC is here to stay.
have your say