Oireachtas Joint and Select Committees
Thursday, 18 December 2014
Committee of Inquiry into the Banking Crisis
Context Phase
4:05 am
Mr. Rob Wright:
Telling people that 80% of them would not pay taxes is pretty good. I forgot my vote. Do I hear 90%? I should not say that. In Canada, at tax time people file their taxes not just to pay taxes but to receive important tax credits for lower income families and people with ability needs. More than half of Canadians do not pay income taxes, net of those benefits. This is a good thing. I do not say that getting people off that roll is a bad thing but one needs to be fair and efficient. The tax system can be a very important tool for growth.
What we have done in Canada is – as I mentioned earlier we have stopped doing it – we have looked at removing barriers to growth by barriers to entry. We have made it easier for people on lower income to get off welfare and support systems onto the payroll without paying a huge tax. There are barriers to work at the lower levels. We have looked at incentivising people at the higher levels to get ahead in life without hitting a big wall of large tax increases. Reform of the tax system was one of the things we recommended and some steps have been taken. I do not know what they are in terms of removing some special benefits, and going forward looking at the tax regime as an instrument for growth gives one some options. I am eating up Deputy Phelan’s time. I am enjoying it very much.
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