Brian Lenihan Jnr (Dublin West, Fianna Fail)

We all have to contribute according to our means. No one can be left in a position in which they contribute nothing at all.

The OECD study is very clear. Ireland has one of the most progressive income tax systems in the world. The thinking behind the universal social charge was to consolidate the income levy with the health charge and, in time, with PRSI. This would have ensured there were no poverty traps and income distortions which existed with a system of 12 different levies.

I wish the Government well in its review of the universal social charge. There are many aspects of it that can be reviewed, as with all taxation. However, as the taxing assembly, we cannot lose sight of the core issue that the State must have a viable tax base. Political parties that call for more expenditure while objecting to expenditure reductions and stating there should be exemptions from income tax for a large section of the population are not advancing a credible economic policy.

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