Dan Boyle (Cork South Central, Green Party)

The Minister has not expressed an opinion, he has outlined the views of the working group which met on the last partnership agreement. In the debate on tax equity, the question of refundable tax credits deserves consideration, given that people on the minimum wage are paying tax at the moment on 90% of their income. That means that a large number of PAYE workers benefit only partially from the tax credits they have been allocated or are unable to take advantage of them.

As to the excuse regarding the effect on the social welfare system of refunding tax credits, it might be argued that administratively it would be a better mechanism for redistributing income. Other mechanisms under social welfare to bring up the pay of low paid workers are very complicated and are not being accessed. The family income supplement is accessed by only one third of the people who are entitled to claim that supplement. By using the tax system creatively in this way, the Minister might, at lower cost and with better efficiency, go a long way towards solving the problem of low paid workers not getting full advantage from the tax system.

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