Éamon Ó Cuív (Galway West, Fianna Fail) | Oireachtas source

Let me repeat what I am saying. Each person can decide to take €100 out of their €1,000, or from whatever salary they have, and put it aside for a pension. Both people are on 40% tax. The first person says, “I will put my €100 into the State scheme” and the Revenue says, “Sorry, I need €40 of that before you do that, so you have €60 left”. Then, the State comes and gives them €20 back. They now, therefore, have €80 in the pot.

The other person says, “I am going to put €100 in” and the Revenue Commissioners very simply say, “I am not going to take anything off you because I like you and you are well off”. Therefore, €100 goes into the pot and it is €80 versus €100. Where is the flaw in that?