Luke Flanagan (Roscommon-South Leitrim, Independent)

The Government has made choices, although it has reversed some of them because they did not sound too good. Nevertheless, it made those decisions and Members now know what it feels about certain matters. The Government had a choice between increases in VAT or in income tax. It is undeniable that people on low income spend a far greater proportion of their money on VAT-rated items than do those in higher income brackets. The poorest 10% pay 14.9%, while the richest 10% only pay 7%. Social Justice Ireland produced an excellent document that explained the effective tax rates following the budgets for the years 2000, 2008 and 2012. It demonstrated that there was room for manoeuvre to increase income tax on the richest in our society. This is something I would have expected the Labour Party to do but it has decided not to. As Sinn Féin managed to put together proposals and found this money, I would have thought the socialists in government also would have been able to do it.

The Government had a choice as to the items on which to apply the additional VAT. It had a choice between concert tickets and toothpaste and a choice between caviar and children's toys. It decided to apply the tax to toothpaste rather than to caviar and to children's toys, rather than to concert tickets.

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