Arthur Morgan (Louth, Sinn Fein)

I appreciate the Minister's point that there would be an additional cost to the Exchequer were he to accept my amendment. However, I also sought to bring the 2% levy threshold to incomes of €100,000 instead of the current level of €150,000. In addition, I sought to introduce a 3% levy for incomes in excess of €200,000, on the basis that people with that level of income are in a position to afford such a levy. This is in complete contrast to people on lower incomes, who cannot afford to pay it.

In effect, the Minister is impoverishing, significantly, a substantial number of people on very low incomes. As we face into the economic downturn, the number of people involved will be ever growing. Although my amendment contains what the Minister might consider a negative implication, on the other hand, had he accepted my other two amendments, there would have been a significant positive implication because they sought to alter the thresholds for people on higher incomes.

I agree with the point made by Deputy Richard Bruton that at least income tax is fair, in that if there is a threshold, one's income up to that threshold is exempt. That is not the case here. Does the Minister not accept the point that there is, for example, a disincentive for people to work overtime? In certain cases, when employers might not have enough work to create a new position, they can give an existing employee a few hours of overtime. It is a more cost-effective way of dealing with the issue rather than going the other way. However, employees are now going to be taxed right back to the beginning and they will not accept it. What does the Minister think of that point?

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