Joan Collins (Dublin South Central, People Before Profit Alliance)

It is no surprise that I cannot support this Bill. If proof were needed that the cost of paying for the banking system's economic collapse has been unfairly loaded onto the backs of those who can least afford it, it is to be found in the income tax Estimates for 2011 compared to 2010, which were released by the Revenue Commissioners last week. The figures are incredible. Those earning €17,500 to €20,000 a year - which is less than €400 a week - have seen their tax bill treble in 12 months. It was argued that such people were earning too little to be taxed, but nonetheless their tax bill has trebled.

People earning €20,000 to €30,000 a year, which is €400 to €600 a week, faced a 50% tax increase last year compared to 2010. At the same time, those earning per week what the poorest earn in a year, are unaffected by reductions in tax credits and rate bands. As a group, those earning over €2 million a year will pay less this year than last. It is outrageous. We have repeatedly pointed out that wealth should be taxed. The top 5% whose wealth increased by €45 billion last year on the back of austerity, and whose overall wealth amounts to over €200 billion, should be taxed at 5% which would yield €10 billion. A tax of 10% would yield €20 billion. Why are such measures not being examined? Why has the Government targeted the most vulnerable? The scale and immorality of this injustice is beyond belief.

Having piled austerity measures on working people, the unemployed, those on welfare and children in DEIS schools, the Government has a neck to propose even more tax reliefs for those on high salaries. Under the special assignment relief, it is proposed to make 30% of the salaries of those covered tax free. The Government should hang its head in shame.

The Minister of State with responsibility for disability, Deputy Kathleen Lynch, has said that funding to maintain supports for disabled children moving from school to adult services - which even Fianna Fáil ring-fenced - will be cut. Yet people coming in for tax-free credits will also receive €5,000 in tax credits per year for their children to attend school, which is outrageous. There is no evidence that this measure will create employment beyond the 60 or 70 people who are expected to avail of the scheme.

The Minister is also proposing to allow companies claiming tax relief for spending on research and development to transfer that relief to key employees. These R&D tax exemptions amounted to €215 million in 2009. The definition of "key employee" is subjective, to say the least. The scope for cutting certain employees' tax bills is considerable. I have no doubt that there are hundreds of accountants, tax consultants and lawyers poring over these measures to assess their suitability as yet another tax loophole for the very well-heeled.

I wish to refer to the residential property reliefs on capital allowances. These reliefs cover section 23 properties which played a key role in inflating the property bubble with disastrous consequences. They also cover investments in hotels, crèches, nursing homes and private hospitals. The Minister has completely rowed back on the plan to phase out these property tax breaks proposed in the December 2010 budget. The 2011 Finance Act measures which sought to ring-fence income that could be sheltered by these allowances have been abolished by this Bill.

People are bitter and are becoming more so by the day. I meet people in the streets who say that this Government should watch its back. I attended a meeting with lone parents who are facing accumulated cuts in their income. They are angry as a result. Day after day, we see Deputies appearing in this Chamber with new dresses and other new clothes, yet there are women who cannot put food on the table. It is outrageous. They are totally out of touch with what is going on in society. It is business as usual, putting the boot into the most vulnerable and those on modest incomes, while licking the backsides of the rich. That is what is happening here.

See this speech in context