Paschal Donohoe (Dublin Central, Fine Gael)
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I believe tax reduction and reform has a role to play in a resilient economy. I have outlined a specific agenda on this. As I said on budget day, and reiterated at this committee, I do not want to put in place measures that remove people from the tax net entirely, whether that be on top of the people already out of the tax net. In other words, I do not want to find myself embarked on a policy course that narrows our tax base in terms of income tax and USC.

That is why I have identified putting a particular focus on marginal rates of taxation. Marginal rates of taxation for somebody on a middle income of in excess of 45% are high and are out of keeping with many of the economies with which we will compare ourselves. In stark contrast to the period Deputy Pearse Doherty focused on, the tax measures in question involve €300 million out of total tax take of €58 billion to €60 billion. I am meeting the 2:1 requirement for expenditure and tax reduction to ensure it is done in an affordable and moderate way. I am not looking to put in place any form of a tax decrease on personal taxation which we find we are not in a position to pay for in the future. This is one of the reasons I made a change to stamp duty on commercial property where I am looking to broaden the tax base.