Dr. Nat O'Connor:

No, not fully, but there would be absorption of some of that tax relief; therefore, it is inefficient. There is a dead-weight loss and the tax relief is also inequitable.

Let me come back to the Deputy's earlier point about the tax rates and public spending. An issue arises in terms of Ireland's future growth model. For example, we see a shift in Europe, with Jean-Claude Juncker talking about the social wage and the importance of minimum wages across Europe as part of the growth model. In looking at the question of cutting taxes to incentivise economic activity versus public services and public investment to grow the economy, we are very much moving from the latter, which is a shift of thinking in regard to the tax system.