Post Budget Analysis 2016
The final budget of the 31st Dáil was announced on 13 October 2015 by Ministers Michael Noonan and Brendan Howlin. It contained a number of measures that the SFA had called for and demonstrated an appreciation by Government of the importance of entrepreneurship and small business in Ireland.
The reduction of the Capital Gains Tax rate for entrepreneurs to 20% will be a significant boost to serial entrepreneurs looking to start new ventures and create more jobs.
The initial moves by the Government to end the discrimination in the tax system against self-employed and proprietary directors is also hugely important for SFA members. This has been a long-fought battle and it is to be welcomed that the risk takers and job-creators in the economy will be treated equally by the tax system.
The SFA also endorsed the Government's target of reducing the marginal tax rate to beneath 50%, with reductions in USC. This, along with the childcare subvention, will put more money in people's pockets and serve to boost the domestic economy. It should also relieve wage inflation pressures and thus help small business competitiveness.
An increase of 50c in the National Minimum Wage was announced in Budget 2016, you can read further details here.
Full analysis of the Budget by Ibec is provided on the SFA website.