Mangan Report recommends taxing Child benefit as a Budgetary option!
Taxing Child Benefit is one of the options recommended by the Mangan report in relation to reforming the Child Benefit Regime. The Mangan report has described taxing Child Benefit as “most feasible options for change”.
Any move towards taxing Child Benefit would create anomalies, and leave many working families much worse off than welfare families.
There are many welfare type benefits that are not taxed which include Rent allowance. Many hard pressed taxpayers may well find themselves much worse off than Welfare families when the tax free rent allowance is reckoned.
Working families have to incur such costs as travelling to work and childcare costs that Welfare families do not have to bear. In addition Ireland is almost unique in that it does not provide a tax allowance for dependent children like many other Countries.
The cost burden seems to fall particularly harshly on working families. There was a substantial change in our society towards higher labour participation rates, where two parents work to meet their outgoings, which include travel to work expenses, substantial rent or mortgage repayments, and childcare costs.
Any regime which would move to taxing Children's allowance would need to provide tax relief on outgoings in order not to undermine the viability of work.
Working families need an incentive to make work pay while they rear the next generation of taxpayers!
400,000 families face tax on children's allowance - Independent.ie