As a social justice measure, we shall reduce income tax for workers who earn the least and substantially improve the quality of life of such workers. Income tax shall be reduced to 10% to anyone earning less than €20,000 per year.
Currently, the 0% tax rate is on the first €9,100 but goes up to 15% on €14,000 and 25% till €20,000. Therefore, we shall reduce the 15% and 20% tax band to 10%. Anyone currently earning €20,000 will now save up to €1,185. Anyone currently earning €15,000 will start saving up to €345 per year. This measure will leave not less than €44 million in the pockets of our workers and families especially when you consider that over 121,000 workers earn less than €20,000.
Think we need more information on this proposal. From my current understanding, this will apply up to 20,000 - after which (i.e. 20001eur) the current rates will apply. I'm sorry, but when calculated, this would leave a no-man's land (paygap-wise) for wages consisting of 20000eur - 21500eur. Thus, if you're currently earning 19500 and an employer offers you a raise of 1000 euros, you will be better off refusing! This also applies to overtime, where workers need to ensure they never exceed this:(
What about those who earn more than 20,000? To be fair it should be set to affect all earnings bands up to 60,000. Obviously giving more support to those who earns less, and less support to those who earn more, but to not gain anything by those who earn more than 20,000 is unfair. Hard work and studies were involved to manage to earn more than 20,000. Nobody should be penalised for studying and being a hard worker.
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