Deputies:

Hear, hear.

Deputies:

Deputy Brian Lenihan:

Deputies:

REFORMING HOW WE TAX INCOME

Deputies:

It is also clear that our income tax system has become very imbalanced. Next year, almost half of income earners will pay no income tax and 4% will pay almost half of the total yield. If we want to sustain high levels of Government services, this imbalance must change. The time has come to transform how we tax incomes and to simplify the position and make it fairer and more broadly based. It is my objective to introduce in 2011 a new system of just two charges on income. A new universal social contribution will replace employee PRSI, the health levy and the income levy. It will be paid by everyone at a low rate and on a wide base as a collective contribution to public services.

See this speech in context