Clare Daly (Dublin North, Socialist Party)

It was sickening to hear Government Deputies crying ochón about the hardships faced by ordinary people who are the victims of this charge while condemning them to a review which will be completed at some point in the future. Everybody knows the universal social charge was the last Government's great Robin Hood in reverse tax. It took money from the poor in order to give it to those at the top. When the last budget was passed, those on annual incomes of €500,000 gained thousands of euro, whereas the lowest paid workers were forced to pay exorbitant proportions of their incomes. The charge is an absolute disgrace and it does not even make sense because those earning the lowest incomes spend the largest proportion of their money, thereby making a positive impact on the economy. The only justification given for the charge is that we need the money and must share the burden. It is like the response the Taoiseach gave earlier today in regard to the bin men of south Dublin who have to take a €200 hit on their weekly wages so that we all share the pain. The only sharing of pain is by ordinary and middle income earners while those at the top make the gain.

As Deputy Joan Collins stated, this is about choices. The universal social charge is not necessary and the Government did not need to await the outcome of a review to choose to reduce tax breaks to the EU average, thereby saving the State €5 billion in tax foregone. That is much more than what is generated by the universal social charge. It could have reformed the tax exile legislation that allows citizens like Denis O'Brien to escape taxes. It could have introduced PRSI charges or health and income contribution levies on capital allowances. I am surprised Sinn Féin is not targeting that sector instead of asking workers to pay more taxes. These measures could have raised far more than the universal social charge.

The Government decided in advance of a review to reduce VAT and employer PRSI, which is already one of the lowest in Europe, in order to benefit employers. However, it has chosen to ignore proposals that could alleviate the enormous hardships that workers are experiencing. It is not good enough; the charge should be abolished straight away.

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