Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I am arguing, as the Deputy agreed earlier, that a narrowing of the tax base over a period - where significant amounts of money would be involved - would leave us open to the kind of shocks we were open to when the previous Government but one narrowed the tax base during the Celtic tiger era. Although that Government thought it had the resources to do so, transactional taxes, particularly those from the building industry, such as VAT, income tax from 250,000 workers and stamp duty, disappeared from the Exchequer when the shock came. This tax income had to be replaced, which was one of the reasons the USC was introduced. I am saying that, as a general principle, this is what happens when we narrow the tax base. I am replying to the Deputy's amendment to have a report and giving him the view on what would be the nature of the report that a narrowing of the tax base can have adverse results. When we come to particular instances, such as what I proposed in the section we have just disposed of, it is affordable in a particular year but must be seen in the context of a progressive movement towards tax reform over five or six years.