Brian Cowen (Laois-Offaly, Fianna Fail)

The amendment relates to the home carer's tax credit of €770 which, under section 466A of the Taxes Consolidation Act 1997, is granted to married couples where one spouse works at home to care for children, the aged or incapacitated persons. The amendment proposes that the amount of the home carer's credit should be the same as the maximum of the employee tax credit, commonly known as the PAYE credit, which, by virtue of section 3 of the Bill, will amount to €1,490 this year. In other words, the amendment seeks to increase the value of the home carer's tax credit by €720 per annum.

It is estimated that to increase the home carer's tax credit as proposed would cost €63.5 million in a full year. As I indicated in my Budget Statement last December, the total cost of the income tax and revenue changes I made is €887 million in a full year, which is 30% greater than the previous year's total. The increases I made in the employee tax credit and personal tax credit, in addition to benefiting all workers, were intended to ensure all those on the minimum wage would be fully outside the tax net. The changes I have provided for in the Bill are generous by any standards and I am not in a position to accept the Deputy's amendment.

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