Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

One of the issues my party has with what the Government has done to the USC is that it seems to have had the effect of widening the gap between rich and poor. Social Justice Ireland indicated that the gap between those who are on social welfare and those who earn €50,000 has widened because of these measures and the measures the Government has implemented.

It is quite shocking that €190 million will be given back to those who are earning over €70,000, that is, the richest 14% in society, and at the same time Government investment is likely to fall over the next number of years. Would it be better to ensure that the gap to which I refer does not increase and that the Government has the necessary investment funds?

Over the next five years, the Government will have a fiscal space of approximately €8 billion. I note the Government has indicated that it will seek to reduce USC continually into the future. If one were to get rid of USC, it would involve a reduction of €4 billion in that period, which is half that fiscal space over the five years. Given the crisis in housing, health and so many aspects of society, surely it is the wrong direction for the Government to be taking that the fiscal space reduction would be so heavily weighed towards income tax rather than service provision expenditure.