Gerald Nash (Louth, Labour) | Oireachtas source

We know what happens when we narrow the tax base, and that is exactly what is happening here. If the Government is to proceed with the plans enunciated by the Tánaiste, we are getting into a very dangerous zone. We know what will happen. We have been living with the consequences of narrowing the tax base and the fiscal challenges, to put it mildly, that has imposed on the State over the past decade. We have to learn lessons from that. There is nothing fair about a budget that introduces tax cuts to the tune of €800 per person for someone who is earning a significant salary compared with somebody who would benefit to the tune of €130 or €140 if he or she is earning between €25,000 and €35,000. In nobody's language is that fair or equitable.

On the question of clawback, the principle is well established regarding adjustments made to the higher rate of tax and to the taxation system more generally. I recall in budget 2015 that when the top rate of tax was reduced to 40%, a countervailing measure was argued for and introduced by the coalition which saw the rate of USC for those earning over €60,000 increased by 2% to claw back some of the benefits. That is a fair and progressive way of introducing changes to our tax code that does not disproportionately benefit those who are, objectively, better off. In no way are the tax changes made in the budget fair to those earning between €25,000 and €30,000 compared with those who are on much more handsome salaries.

With the permission of the Ceann Comhairle, I will raise a technical matter on a point of information and I beg his indulgence. I was a little late coming into the Chamber and did not have the opportunity to raise this matter at the start of the debate. Three of my amendments were considered on Committee Stage, but have been ruled out of order. We understand if an amendment proposes a charge on the Exchequer, the clear position is that an amendment of that nature would be ruled out of order. One of the amendments, amendment No. 25, refers to relief for certain disposal of rental property to a local authority or approved housing body. That proposes a reduction in the rate of an application of a tax. My understanding is that a proposal to reduce or abolish a tax or increase exemptions to a tax are not necessarily Government prerogatives.

I assume the amendments have been ruled out of order based on the belief that they would impose a charge on the Exchequer. I ask for a ruling from the Chair on that. We spend a lot of time in opposition trying to develop sensible amendment. There is little point in tabling amendments if they are all routinely ruled out of order. An explanation is required for the decision on that amendment. Others I understand, if there is a clear imposition of a charge on the Exchequer. It is hard to see why my amendment was ruled out of order and I would appreciate an interpretation on that from the Chair, if the Ceann Comhairle is in a position to give one at this point in time.

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