Justice Minister O’Callaghan: Workers Should Not Pay Over 50% Income Tax Above €44,000
Justice Minister Jim O’Callaghan argued that workers should not pay over 50% of income above €44,000 in taxes, calling the current 52% marginal rate “imprudent.” He advocated for budget proposals benefiting workers and praised Seán Lemass’s economic and Northern Ireland policies.
Minister for Justice Jim O’Callaghan stated that workers should not pay more than half their income above a certain threshold in taxes, except in “exceptional circumstances” like a fiscal emergency. Currently, workers earning over €44,000 annually face a marginal tax rate of 52% on income above that amount, including income tax, universal social charge, and PRSI.
Speaking at the annual Seán Lemass commemoration, O’Callaghan called this marginal rate “imprudent, demoralising and contrary to the public good,” especially for middle-income workers taxed at high levels for working extra hours. He emphasized that the government should not penalize work or overtax success. He praised Lemass’s legacy, noting his belief that economic growth should benefit workers first and that a successful state supports families with dignity.
O’Callaghan, while not the Minister for Finance or Public Expenditure, expressed hope for budget proposals benefiting working people. He mentioned upcoming budgetary discussions and his intent to secure maximum funding for the Department of Justice, despite constraints. He also lauded Lemass’s approach to Northern Ireland, highlighting his historic meeting with Terence O’Neill as breaking decades of silence and fostering cooperation on trade, electricity, and tourism for a “unity of hearts.”