Oireachtas Joint and Select Committees

Tuesday, 15 April 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Irish Stability Programme Update: Minister for Finance

8:35 pm

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party) | Oireachtas source

The Minister mentioned progressive taxation but he has captured many of the 850,000 people who are low paid through two new taxes, on homes and on water. This runs counter to the claim of a progressive tax system overall.

The argument is that the tax base needed to be widened under a fictional notion that there is some mysterious income people have outside of their wages from which they can pay property and water taxes. This simply does not exist.

With regard to the treatment of the property tax and the water tax, as far as the Minister and the Exchequer are concerned, next year we hope people will be paying for water. What difference will it make to the Exchequer figures in respect of the supply of water? Will the Minister have to provide Exchequer funding for the supply of water? Presumably it will not meet the full cost.

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