Michael Noonan (Limerick City, Fine Gael)

Sinn Féin's charge of regressivity of the universal social charge was dealt with soundly last night. The comparison made by Sinn Féin of the individual on €16,016 and €100,000 as an example of regressivity is wrong. An individual earning €16,016 in 2011 will be expected to pay €440 in taxes over the entire year. An individual earning €100,000 in 2011 will be expected to pay €40,867 in taxes and charges. This means that the individual on €100,000 earns six and a quarter times the income of an individual on €16,016, but pays 93 times the tax. It is hard to argue that is regressive; that is one of the more progressive taxes one will find. Some €440 is paid on the lower income, while €40,867 is paid on the higher income. This makes the point.

Many would argue that the universal social charge is a just tax because everybody pays it. There is no shelter from it and the wealthy cannot use tax avoidance schemes to evade the charge. Passive investors cannot reduce their liability through capital allowances. There are no exemptions for investments from forestry, mining, patent royalties or artistic pursuits. Everyone pays this charge. For a party advocating the removal of tax breaks that allow the wealthy to avoid paying their fair share of tax, this seems to be an instrument in which Sinn Féin might see some merit. It removes all possibility of tax avoidance.

In condemning the universal social charge, Sinn Féin finds itself unlikely bedfellows with tax accountants, tax planners-----

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