Dual-income married couples and single persons earning individual salaries over the average industrial wage of £17,000 (€21,601) will benefit most from Budget 2000.
The State's most generous Budget to date provides an increase in take-home pay for most taxpayers through widened tax bands, increased personal allowances and lower income tax rates.
In addition, social welfare provisions costing the Government £400 million a year aim to "ensure that the more vulnerable sections of the community share in the benefits of the successful economy".
Close relatives inheriting the family home also gain from Budget changes to gift and inheritance tax.
PAYE standard rate bands are up by £3,000 for single people to £17,000 while married couples are now split into two tax bands. Single-income married couples remain in the £28,000 tax band while those with two incomes gain £6,000 in a new standard rate band to £34,000.
Dual-income married couples benefit particularly from measures restricting tax band transfers to £28,000 for any one spouse. This effectively penalises one-income married couples who will pay more at the higher rate of tax than two-income couples.
Single PAYE workers earning less than £50,000 gain 2.2 to 8 per cent of their net income in this year's tax package. The big winner is a single person earning £17,000 as they gain £1,006 this year or 8 per cent of their net income.
Tax allowances have been adjusted, but not hugely, with an increase in personal allowances of £500 for single people to £4,700 and £1,000 for married couples to £9,400 at the standard rate. There is no change in the PAYE allowance which remains at £1,000. Incapacitated child allowance has doubled to £1,600.
The combined increases in the standard rate tax band and tax allowances will take about 40,000 taxpayers on low income from the tax net and 125,000 taxpayers from the top rate of tax, according to Department of Finance figures.
Moves begun last year to convert basic income tax allowances into tax credits at the standard rate continue this year. Two percentage points were shaved off both the top and standard rates which now stand at 44 per cent and 22 per cent. The overall tax package will reduce the numbers paying tax at the top rate to 37 per cent in the next tax year from 46 per cent at present.
The Budget affects pay across the board for single and married persons. For example, a single person earning £30,000 is entitled to deductions of £9,792 or 32.6 per cent of income. This provides a net income of £20,208 versus £18,983 last year - a take-home increase of £1,225.
Married couples with one spouse earning a salary of £50,000 have just £988 more in their pay packs this year or after-tax income of £34,380 compared to £33,392 in 1999/ 2000. Deductions of £15,620, or 31.2 per cent of income, are allowed for one-income couples at this salary level.
Two-income married couples earning a combined income of £75,000 qualify for a deduction of £26,566 or 35.4 per cent of income. A couple in this situation show a substantial increase of £2,747 with net income at £48,434 versus £45,687 in 1999/2000.
The Budget doubles the age allowance for those aged 65 and over to £800 for single people, £1,600 for married couples and £800 for widowed persons. Income exemption limits for this age group rise to £7,500 for single people and £15,000 for married couples.
Social welfare entitlements contribute an increase of £7 to old-age pensioners maximum weekly personal rates from the first week in May with proportionate increases for pensioners on reduced rates. Other rates will rise by £4 a week at the same time.
Child benefit rises by £8 a month for a first and second child and £10 a month for additional children beginning in September. Childcare relief has not been introduced, as previously expected, but the Budget provides a £46 million package of initiatives to encourage an increased supply of childcare services.
Mr McCreevy said that in addition, the Finance Bill would provide accelerated capital allowances on qualifying childcare facilities with 100 per cent allowed in the first year.
Substantial changes have been made to gift and inheritance or capital acquisitions tax. The family home is now exempt from CAT where it is either the donor's principal private residence and/or the principal private residence of the recipient who has lived in the house continuously for at least three years previously. The recipient may not dispose of the house for at least six years.
CAT thresholds have been changed to reduce the burden of tax on close relatives and friends inheriting an estate. The new tax-free limit on gifts and inheritances from parents is £300,000; from brothers, sisters, aunts and uncles is £30,000; the limit for other situations is £15,000. The probate tax exemption limit was raised to £40,000.
Before the Budget, beneficiaries of expatriates working in Ireland were liable only for estate assets located in Ireland. Budget changes place estate assets worldwide firmly in the gift and inheritance tax net. The majority of international tax treaties do not provide double taxation relief in those categories of taxation.