Paul Murphy (Dublin South West, Solidarity) | Oireachtas source

I move amendment No. 6:

In page 13, between lines 25 and 26, to insert the following:“10. The Minister shall, within 6 months of the passing of this Act, bring a report on the additional revenue that could be raised by introducing new tax bands for earnings over €100,000 as follows:

(a) Earnings between €100,000 and €140,000 - 50 per cent;

(b) Earnings between €140,000 and €180,000 - 55 per cent;

(c) Earnings between €180,000 and €250,000 - 60 per cent;

(d) Earnings over €250,000.”.

I will be brief. This amendment calls for a report on the introduction of a different series of higher bands of income tax. They are listed in the amendment, although the rate for earnings over €250,000 should be 65%. This forms part of our overall tax proposal, including the abolition of USC for income under €90,000, shifting the tax burden onto very high-income earners and making income tax more progressive.

In Spain, for example, there is an income tax band from €175,000 to €300,000 and another band over €300,000. Germany's highest tax band is over €250,000. Statistically speaking, the more bands a state has, the greater the possibility of making income tax more progressive. The Government makes much of the income tax system being progressive.