Brian Cowen (Laois-Offaly, Fianna Fail)

The argument that the only way to assist married one earner couples in the tax system is through the home carer credit exclusively is flawed. As I said, a range of tax changes have helped such couples in the same way as they have helped other couples and single persons. We have transformed the situation in the sense that there is a much lower interest rate regime, far greater wage growth, far more people are at work and outside the tax net. Some 80% of wage earners pay less than 20% of their wages in tax. That transformation has greatly increased disposable income. Married and working couples are now far better off under the tax code than ten years ago. As I said, 500,000 are outside the tax net altogether. The argument made by the Opposition seems to be that the only way to help married one earner couples is through the home carer tax credit. That argument is flawed. A series of measures in successive budgets have greatly improved the position.

The tax package was 40% greater in size than its predecessor. It helped married one earner couples in the same way as it helped others. The tax package for this year is worth €1.25 billion. If we continue with the right economic policies, there will be the prospect of further tax reforms in the future when all these matters can be considered.

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