Oireachtas Joint and Select Committees

Wednesday, 20 September 2017

Committee on Budgetary Oversight

Ex-ante Scrutiny of Budget 2018: Nevin Economic Research Institute, Irish Congress of Trade Unions, Irish Tax Institute and Chambers Ireland

9:00 am

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

The witness mentioned that the discussion on income tax rates must be framed within the discussion on the type of economy we wish to have. Not to nitpick, but I argue that it should be framed within the type of society we wish to have. Indeed, the type of debate we have is extremely frustrating for me. Perhaps we are all at fault. Perhaps I am not making my voice loud enough or we are not getting other players to make their voices loud enough, but the herd has left the field already with the tax cuts agenda. However, let us put it into the context of what type of society we want. We know the fiscal space is €470 million after allowing for the pay agreement. We can raise it by additional discretionary tax measures, but let us take it as €470 million. The argument is how to cut €200 million in taxes. How do we do that and where does the Irish Tax Institute stand on it? As we sit here discussing issues such as what is the best way to cut €200 million in personal income taxes, as Fianna Fáil members have asked a number of people, there are 456 patients lying on trolleys. Many of them are in pain, some of them are extremely elderly and some are very vulnerable. As we came here this morning 3,000 children woke up in emergency accommodation, accompanied by 5,000 adults. Rough sleepers were moved along from doorways. We use feeble words such as, "We need to challenge or address the crisis in health or housing", yet the debate is completely occupied by reduction in personal income tax rates. I must be unique among the other political parties because nobody comes to my office to ask for a reduction in personal income tax rates, although many people tell me they are under pressure because of the costs of child care, education, health and so forth. The institute has also been a party to that debate. That is its role. How can the institute suggest that we should reduce the tax rates or marginal tax rates at a point when it is so familiar with the other crises that exist and with the fact that the pot is not bottomless?

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