Joan Burton (Dublin West, Labour)

Ordinary taxpayers on the top marginal tax rate now pay well over 40% and well over 50% when PRSI is added and the pension levy, if they are public servants. The Minister is saying that whenever the banks begin to return to profitability out of the NAMA debacle, that only 50% of their profits will be subject to tax where they have accumulated losses. This is the kind of statement that makes ordinary people so angry. The effective rate of corporation tax - which is already low - was agreed to by all parties because it attracts foreign direct investment. However, the Minister proposes to mitigate this tax by 50% for the banks. This does not arise at the moment because the taxpayer is bailing out these banks but whenever and if ever these banks return to profitability, they will have a special bonus while the rest of us, particularly public servants when the pension levy is included, will pay higher and higher marginal rates of tax. This is why people feel such anger.

I put it to the Minister that in the future there will be this great unevenness between the favoured treatment given to the banks compared to the individual ordinary work. Now more than ever, he should give serious consideration to a taxpayers' advocate who would point out these anomalies. Taxation is based on consent, the consent of the governed. In this case, because of the special treatment enjoyed by the banks, most ordinary taxpayers will be of the view they have done enough for these people and will question why they now have to give them indefinitely a 50% mitigation of their low corporation tax rate when and if they eventually return to profit.

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