Paul McGrath (Westmeath, Fine Gael)

I move amendment No. 11:

In page 12, between lines 13 and 14, to insert the following:

"3.—Section 466A of the Taxes Consolidation Act 1997 is amended by the substitution of the following for subsection (2):

'(2) Where in any year of assessment an individual proves that he or she is a qualifying claimant he or she shall be entitled to a tax credit (to be known as the "home carer tax credit") of a sum equal to the higher of the amount specified in section 472 of this Act.'.".

Under current arrangements, an adult who stays at home to look after family members may avail of the home carer's tax allowance which amounts to a tax credit of €770 per annum. The amendment proposes that this tax credit be substantially increased to enable one spouse in a family to stay at home and look after children. The Minister decided this year not to alter the current rate and set out his reasons on Committee Stage. The credit needs to be increased dramatically.

Home carer's tax credit is claimed by approximately 100,000 persons, which implies that 100,000 families have only one income and meet the qualifying criterion that they have a dependent child or ill family member in need of care. Already one income families suffer considerable discrimination. Let us take as an example two families with an overall income of €56,000 in 2004, one of which has one income while the other has two. The couple with one income will have paid €7,000 more in income tax than the second couple. This is unfair and penalises spouses who decide to stay at home and look after their families. Given that forcing people to work can have serious consequences for society and in the light of current child care costs, we should promote an economic option which would allow one spouse to stay at home. This is the context in which I move the amendment and hope the Minister will accept it.

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