Michael McDowell (Dublin South East, Progressive Democrats)

It was only the political arrival of the Progressive Democrats and the national threat of bankruptcy that led Ireland to abandon that failed policy. The result since then has been an endorsement of our economic logic and our political philosophy. However, not everyone sees it that way. The Labour Party, for instance, cannot get rid of its reflexive instinct to meddle, muddle and increase taxes. Deputy Rabbitte stated in September 2005 that he wants to rebalance the income tax system. In essence, that means there is going to be more tax. Yet, the Labour Party ignores the fact we have already a highly progressive tax system.

I wish to put on record some figures certain people like to forget. The top 1% of income tax earners contribute 20% of total income tax receipts in our economy. Another 40% of total income tax receipts are paid by the top 4% of income tax earners. We have a broader, fairer and more progressive system of income tax and it will be made even fairer by yesterday's announcements limiting the size of private pensions and capping the availability of tax reliefs. That has always been a personal goal of mine; that nobody should be able to escape tax liability to the extent of being completely relieved of the tax burden because of clever tax planning and so avoid paying his or her share.

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