Joanna Tuffy (Dublin Mid West, Labour) | Oireachtas source

As I am the last questioner, I will ask my questions before Ms Bayliss replies. I am very much in favour of equality budgeting, but I do not necessarily agree with all of the views of Ms Bayliss's group. For example, I am not sure that basing it on the nine grounds mentioned would be the right approach because the bottom line for me is income equality. We can divide people into sectors and omit many others. The latest Central Statistics Office income and living survey has found that throughout the country there are couples with children, people who are single, lone parents and so on who are insolvent and struggling to pay mortgages. That kind of model would not take this into account. The bottom line should be income equality.
To give an alternative view on some of the issues the delegates have raised, the SILC survey carried out by the ESRI offers a flawed model because it does not include capital taxes. Many wealth taxes were brought in. Capital gains tax, DIRT and so on have been increased, but that is not taken into account. Other taxes were increased also. There is a story in The Irish Timestoday based on a parliamentary question I asked. In 2011 the Government implemented a proposal of the previous Government, whereby an effective tax rate of 90% was imposed on bonuses above €20,000 for bankers. Some €1.3 million was collected in 2011 and there were no bonuses above that amount in 2012. In the same year the threshold for the universal social charge was increased and last year it was increased for wealthier people over 65 years. So far, the CSO income living survey has not shown a widening of the gaps in income. The latest survey was carried out in 2011 and the next one could show such a widening; I do not know. I would not prejudge it, but I am simply saying there is other information available. The OECD states it has the most progressive income tax system in Europe and we have the third most progressive income tax system in the world. That is because of recent changes, largely implemented by the previous Government towards the end of its term. The delegates are putting one side of the argument, but others can be made. The picture is not as bleak as that presented by them.
I would be glad to hear comments on the points I have made. I call Ms Bayliss to respond to all of the questions asked.