Edward Timmins (Wicklow, Fine Gael)

I want to come in on that conversation. I am on record as supporting indexation but I completely recognise the fact that one makes choices in a particular year. With regard to people's income tax, PRSI and USC, that is something that happens over time. We are going to have five different budgets. Each year has its own priorities. People will understand that if tax credits and bands are increased over a couple of years, we cannot suddenly think that there has to be X amount happening every year. People's finances and the economy of this country are more long-term things. One makes choices, as the Minister has done, at a particular point in time that are the most sensible choice for the economy. That is the responsibility. It is not always the most popular thing but sometimes it is the right thing.

I wish to raise a new issue as such, which is around Deputy Doherty's reference to the USC. Would the Minister consider, over time, incorporating the USC charge into our income tax system, given that it is effectively an income tax, though it obviously does not have the breaks and anomalies that our income tax system has? For the purpose of transparency and simplicity, the USC is effectively income tax. People think our top rate of tax is 40%; it is not. You pay 8% USC over 70-something thousand euro. Over time, to make our income tax system more transparent, the USC should be incorporated into our income tax system and we should get rid of the term "USC" altogether.