Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I am in absolutely no rush and I want to respond to a point by Deputy Doherty. We can keep going over and back, if Deputies wish, or we can try to get through our business. The point I make about non-indexation is correct. If the universal social charge, USC, reduction was not in the Finance Bill and we did not provide for the indexation of the system, the Exchequer would have more than €400 million extra by way of revenue and it could make whatever decision it wished on that but it would effectively represent a tax increase on people's income. That is the point I was making. There is no policy decision to index the tax system. It would be an increase by stealth. It is the broad point I am making. The reduction in USC in overall terms negates the non-indexation of the system. One could argue there would be winners and losers and there would be the question of who is benefiting from indexation and the USC reduction. That is in the round and one more or less cancels out the other. Otherwise it is a hefty tax increase that will give the Government and the Oireachtas more scope for choices, which I accept, but the fundamental point holds true.