Michael Noonan (Limerick City, Fine Gael)
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They are €335 million in the first year and €390 million in a full year. I agree with the Deputy's approach. The Government's approach is that as the economy grows, there is extra tax buoyancy. Between 2016 and 2017, this amounts to about €2.5 billion. This will be used to improve public services and reduce personal taxes. By and large, that is what the Government's intention is. More will be allocated to improve public services. The commitment in the programme for Government is that at least two to one will be for the improvement of services. There will then be a residual amount which will be about one third of what is available in any given year and this will be available for reform of taxation. That principally will be used for, among other things, reduction of personal taxes. The approach we are taking is that in reducing personal taxes, while not excluding the possibility of varying the income tax code, we will progressively reduce the incidence of USC. This year, we had very little money so we are doing what we agreed in the last section, which we disposed of. Next year, we will move on. As a general principle, I would like to keep the tax base broad. At present, €13,000 is a good entry point into USC because it is important that everybody who earns contributes something.