Mary Harney (Dublin Mid West, Progressive Democrats)

This tax change was made a number of years ago and was made at the suggestion of those who examined the tax system to make it equal between the better off and the less well off, in other words, those who only pay tax at the standard rate and those who pay some tax at the higher rate. Otherwise, better off people would receive twice the benefit of those who are less well off and only pay the standard rate.

The introduction of lifetime community rating in particular will incentivise young people to take out insurance or disincentivise people to wait until they are in their 40s or 50s to do so. This will have a major beneficial impact on keeping young people in the market and attracting others.

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