Oireachtas Joint and Select Committees

Tuesday, 20 September 2016

Committee on Budgetary Oversight

Revenue Raising Proposals: Minister for Finance and Revenue Commissioners

9:30 am

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I accept that, but I have sat at tables such as this and questioned other Ministers who wrecked the economy because they cut taxes to an unsustainable level and relied on property-related taxes. Corporation tax receipts are now in excess of the amount produced by property-related taxes at the time. The responsibility of the committee is to ensure that, regardless of our own political or personal opinions on what should happen, there is evidence when discussing matters with a Minister or suggesting a course of action. For example, in its presentation to the committee, the ESRI stated the argument that a high marginal tax rate affected employment needed to be tested. There is the counter argument that supporting child care payments could have a better impact on employment creation and the economy. I will give the Minister some figures. As we know, by 2021 the USC will be bringing in €5.4 billion. To provide free child care services 52 weeks of the year, for 50 hours per week, for every child from the age of six months to schoolgoing age would cost €4.1 billion. I am not advocating that we should do this, but they are the choices against which the Minister has decided to turn his face. He has instead gone with something of which everybody has been critical and nobody has suggested this is prudent. People have continually warned him that this is the wrong direction to take, but because of his political ideology, he has decided to continue down this track.

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