Brian Cowen (Laois-Offaly, Fianna Fail)

I do not accept the contention that this is a regressive tax. It is a progressive tax. The reason is that it is based on gross income. If one were to apply this simply to rates, people would have the benefit of access to various allowances and shelters before they would have to pay the 42% rate. Paying on gross income means that where one's income is higher, one pays a higher amount. It is not correct to state in that sense that it is a regressive tax; it is progressive. The amount one pays depends on the amount of income one earns.

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