The Government's emergency Budget represents nothing less than a betrayal of working families. Not alone will they find their incomes savaged from the beginning of next month, there is almost certainly even worse to come.

Everyone knew that Brian Lenihan would have plenty of bad news to dispense yesterday afternoon. He didn't disappoint. In what was the toughest Budget in our history, he doubled the income and health levies, scrapped mortgage interest relief, put up the excise duty on diesel and cigarettes, halved the early childcare supplement and increased the rate of inheritance and capital gains taxes. And the pain won't stop here.

Bracing

Already middle-income families are bracing themselves for the return of third-level fees this autumn, Lenihan also signalled the complete abolition of early childcare relief, the taxation of children's allowance and the return of rates.

In fact, there are probably even more tax increases and service charges on the way.

Yesterday's speech was full of references to the need to "broaden the tax", which most analysts interpret as meaning that yesterday's smash-and-grab was merely the opening episode in what is set to be a financially abusive relationship between the Government and working families.

We teamed up with accountants Mazars to show the effect of the Budget on a number of typical taxpayers (see graphic opposite). When analysing these figures the important thing to bear in mind is that, as yesterday's Budget did not cover a full tax year, the figures showing gains or losses (everyone loses out) are monthly rather than annual.

Numbing

When this fact is borne in mind the scale of tax increases meted out to middle-income earners yesterday is numbing. Take our example of a couple with a joint income of €80,000. They are down €251.73 per month courtesy of yesterday's change. That works out at a staggering €3,020 on a 12-month basis.

And just in case Lenihan thinks that a couple with two children and a joint income of €80,000 are somehow "wealthy", those with lower incomes have also been hammered. Frank Greene, head of tax at Mazars, estimates that a married couple with one income of €40,000 and no children are the equivalent of €1,200 per year worse off.

For couples with young children it gets even worse. Greene estimates that a couple with one income of €40,000 and two children under five will be a massive €2,200 per year worse off.

Destitution

That's almost €200 per month. For someone on a modest income that's the difference between virtual destitution and just about getting by.

And Lenihan, a senior counsel who wouldn't know how to get by on less than €200,000 per year, expects to come back for even more next year and in 2011. Including yesterday's tax hikes, he is planning to raise taxes by a total of more than €6bn over the next three years.

These will include rates on domestic property which will cost at least €1,000 per home, the taxation of children's allowance and higher taxes on low to medium-incomes.

Coming on top of this will be university fees, the scrapping of the early childcare supplement (costing families with children under five another €550 per child), and a carbon tax to keep the Green Party happy.

I can't see how this will help the economy to recover. This is the fiscal equivalent of trying to extract blood from a stone. Far from helping the economy to recover tax increases of this magnitude will drive it into the ground.

And while the little people, those who have played by the rules and paid their taxes, get screwed, the Government does nothing about tax exiles or our bloated public sector. Truly those whom the gods wish to destroy they first make mad.