Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I also disagree with Deputy Doherty. I want to put on record that the USC was also reduced in last year's budget. The objective was that the significant burden of income tax would be reduced so people would have more spending power, and that proved to be correct. The USC rates were reduced, people spent more and we got more people back into work. To put this in context, at the peak of the recession the income tax take was over €13 billion whereas the expectation is for income tax in 2017 to be over €20 billion. That is the level of increase in income tax for taxpayers.

Four of us who are present sat through the banking inquiry, which was long and tortuous. There is some merit in what Deputy Doherty said about not eroding the tax base but there comes a time when people have to be given the opportunity not to be paying all of the tax. As Deputy McGrath said, the amount here is modest at €300 million plus - it is not billions. I am one of those who does not want to see the tax base eroded. Nobody wants to go back to the insanity of what happened from 2008 to 2011. However, at some stage, the people who are paying income tax have to be given the opportunity of a break. This is a small, modest break. Deputy McGrath noted that people hit the higher rate at €33,800. That is one of the lowest points at which a higher rate applies in the OECD.