Peadar Tóibín (Meath West, Sinn Fein)

They have all been exempted, that is my point. The only section that benefited from the Government's policies were those earning over €2 million and they had a net decrease in tax levels.

In the 1790s, the idea of a progressive tax was introduced by economists. The idea was that the more one was paid, the more one would be taxed. In a liberal democracy people have come to the view that it is a good idea. Nonetheless we have a ridiculous situation where the Government said it will not tax labour, but in fact it is not taxing wealth. Most of the income of low earners goes on spending, so tax increases for them will bring about decreased consumer demand. The Minister for Finance must know that demand is at the centre of our economic problems, yet low and middle income earners are being relentlessly attacked by Fine Gael and Labour Deputies.

There is another way. Speaking on the Finance Bill last year, the then Opposition Member, Deputy Joan Burton said, "The central charge against austerity politics is that it hinders the essential need for growth. Austerity, as the sole component policy, is a naked triumph of ideology over economic pragmatism". However, Labour and Fine Gael Deputies have taken money from those earning between €15,000 and €17,500 per annum and are giving it to people earning over €2 million a year. The facts speak for themselves. That is what the Minister has achieved so far.

See this speech in context