Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

I met some of the members of ECOFIN last week. They find it remarkable that we are able to implement this level of taxation and cuts without civil unrest or strikes throughout the country. There would be implications were such events to take place. It would send a message throughout the world to anyone who was looking at the country and we are taking that for granted. I am unsure whether the media are being briefed about the level of difficulty at which the Department is operating.

I wish to point out one issue with regard to taxation or levies on pensions. The effective rate of tax, as Deputy Fleming and myself are aware, on anyone earning in the top bracket is really 52% at the moment. Let us consider what would happen if, as proposed by some committee members, the Exchequer put a 99% levy on anything over €100,000 and a 50% levy on anything over €60,000. It is unbelievable to think that for every €100 earned, if there was a 52% tax level and a 99% levy, then one would pay €151 in tax. It is probably the most crazy mathematics I have ever encountered, but the Minister of Sate can pass a comment on that if he so wishes.