Five key reasons why you are still feeling financially stretched
Smart Money: No inflation and rising wages. So why don’t you feel better off?
The cost of mortgages and rent are impacting on disposable income
There has been almost no overall inflation in prices in the Irish economy in recent years. And wages are rising. So how come many – particularly in younger age groups – do not feel much better off? There are 5 key reasons why many are still feeling the squeeze. Here they are:
1. The Government is taking more of your money than before the crisis. Well it is if you are have a middle and higher income anyway. The big increases in taxes on income during the bust remain largely in place for those at most income levels except the lowest, with the USC being the main culprit, though not the only one. For the lowest earners, the main impact in terms of higher tax on their income during the crisis have been reversed by the reliefs of recent years. However at most earnings levels we are paying more tax on our incomes than before the crash, with the biggest percentage increases being for middle earners and higher earnings up to around €100,000.