Marie Louise O'Donnell (Independent) | Oireachtas source

In his very good paper Professor FitzGerald made a point which is important for my colleague, Deputy Collins, to bear in mind. Referring to the period after the property bubble burst, he stated: "The need for increased taxes and for cuts elsewhere in the economy was greatly increased by the decision by successive governments to protect those on low incomes who were dependent on the welfare system." Therefore, we had tax cuts to protect people on low incomes. He then went on to say that the bulk of the burden of increases in taxation had to be carried by those on middle incomes.

Will he tell me what he means by "middle incomes"? How does Professor FitzGerald define it because if that is the case - to protect the less well-off; I know all about the ramifications - we are back at square one with regard to what Mr. Staunton said about progressive taxation. While it is actually progressive, there is a massive plateau. It kicks in around €30,000, bar the universal social charge, USC, which is the same at €17,000 and €70,000. I brought up this issue with the Minister because there was a cut below €12,500, as it does not appear to be progressive in the sense that those earning €70,000 are nearly paying less than those earning €42,000. Is the Chairman with me?