Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Speaking to IBEC's members, I hear that the marginal tax rate is no longer the issue. When we were discussing the matter at the finance committee, the Government's argument for a reduction in taxes was that it would boost employment. We are now in a different scenario where there is almost full employment and there is a danger of overheating the economy. Mr. Brady made the point here that somebody on the average industrial wage, which the Taoiseach says is €44,000, should not pay the marginal tax rate. The cost of increasing that would be massive. The standard rate band would have to increase by €10,000 for a single earner, which would cost in the region of €2 billion. I am not sure if some of IBEC's members are asking Mr. Brady to say that. How important does he think that is at this time? That is one way of dealing with the high cost of housing, childcare and so on, but the other way is increasing capacity. How serious is that? I am hearing otherwise from IBEC's members, who say it is not the issue at this time.