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Irish Tax to go up in 2010


A budget shortage of 4bn may force higher income tax in Ireland next year. Currenly, 22% of taxpayers in Ireland pay 77% of the taxes, and the top 2.5% pay as much as a third of taxes.

"The first step towards that goal is the €2bn savings, the details of which will be announced next week. Next year, we need to make a further adjustment of €4bn and a proportion of that must come from tax." - says Finance minister Brian Lenihan.

The increase may also spread to property tax, affecting thousands of homeowners. Tax on homes is expected to raise 1.7bn, a third of the gap in the public finance.