Dáil debates

Tuesday, 14 October 2008

Financial Resolution No. 3: Income Tax

 

7:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)

Will the 1% levy effectively scupper the social partnership deal? Under the terms of the deal, low income earners were awarded an 8.5% increase. That is now gone, and they will effectively pay double that in the levy. Can the Taoiseach confirm that low income earners will have to pay this levy when they are not even eligible to pay tax? It appears that people who are not in the tax net at present will have to pay this levy. It is, therefore, a significant penalty for them. Perhaps the Taoiseach would clarify this point.

Resolution No. 2 is welcome at first glance. It is good for first-time home owners to get some relief. However, I have a difficulty with it. There are people who bought small apartments or so-called starter homes who now have children on the way or growing children and need more space. Is it fair to exclude that category of people, who are not trading up for flash Harry purposes to impress the neighbours but out of necessity due to changes in their families? Does the Taoiseach accept this is grossly unfair to that category of people?

While the increase in mortgage interest relief for first-time buyers is welcome, will the Taoiseach address the anomaly that exists for low income home owners under the shared ownership scheme? I can offer the example, about which I had a phone call some moments ago, of a woman who is getting no tax relief on the proportion of her home that is owned by the local authority and rented to her. In fact, she is paying approximately €485 per month for the rental share in addition to the repayment of the mortgage she has taken out. Will that rental payment under the shared ownership scheme be included for the purpose of tax relief?

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