Dan Boyle (Cork South Central, Green Party)

I will address the substantive amendments before us. As members of the Opposition, the limitations we face in making amendments of this type mean that these upward figures are the extent to which Deputy Bruton can suggest these changes. I agree with what has been proposed in these amendments and support them.

The real change which is needed and which would cut across all parties and potential Governments is the need to index these bands and credits. As members of the Opposition, we are not allowed to make such amendments because they would cut across the decision-making powers of future Ministers for Finance. While a considerable amount of phony debate has taken place about headline rates of income tax, there has been less debate about the effective rates of income tax. One can only tackle the underlying problems about iniquities relating to effective rates of income tax by introducing the concepts of index linking. The sooner we move and have real debate on these issues, the less need there will be for amendments of this type.

If I recall correctly, on Second Stage, the Minister spoke about statistics and the proportion of people, their income levels, what they pay in terms of overall income tax and the percentage of the income tax take. The figures were spurious because one needs to break down each of those income groups and find out what is the effective tax rate. One needs to discover what they are paying as a proportion of their own income. We would then know the degree of equity that exists within the income tax system. It is perceived that people on the highest incomes pay a proportionately less effective tax rate than people on the lowest incomes. Until we get statistics more honestly provided in this form, the Minister cannot argue against the type of amendments proposed this evening by Deputy Bruton.

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