Dáil debates

Friday, 9 November 2012

Tax Transparency Bill 2012: Second Stage [Private Members]

 

12:30 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I compliment Deputy Eoghan Murphy for bringing this Bill forward for two reasons. The first is that it generates a debate on this subject and the second is that it gives us an opportunity to speak on an issue that affects every citizen in the State. Every citizen is affected either in paying tax, receiving the benefits from tax they paid previously or receiving the benefit of the taxes being paid by the general population.

There are positives and negatives with this Bill. I totally agree with the concept of transparency. It is hugely important that the voting public knows where its money is being spent. At a meeting recently I heard a public representative say that the local authorities provide no services at all. That was as far as he could see, and he is a member of a local authority. When asked about public lighting, public footpaths, the vocational education committee, VEC, fire brigade service and all the other services in place that require ongoing maintenance, the same person appeared to take those for granted. Undoubtedly, there is a need to clearly and emphatically isllustrate what one gets for paying one's taxes, regardless of whether they are income taxes or otherwise.

I have serious doubts about the costs of presenting the breakdown of their taxes and where they go to individual taxpayers. There is also the danger that in the current economic situation it will become divisive for society. There will be people who will say they do not wish to pay for something because of what it costs them. They might say, "I wish to be selective and I will now vote for a party that provides that". That could be divisive for our society. I recall being told by a Minister in this House not many years ago that ours is a high wage, low tax society. Where did that get us? We have the illustration. This could be very divisive and dangerous from that point of view.

However, it is hugely important that voters relate their activity in the ballot box to the consequences of that activity. That is where transparency is important. There is no reason that the Revenue Commissioners or another body, in conjunction with the various Departments, cannot produce a diagram which shows the slice of the tax cake apportioned to each service throughout the country. It would cost very little. Only one division has to be done. One takes the total amount of revenue, the total expenditure required for the various services and one apportions the revenue as a proportion of the total circle. That would have the same effect. It would be particularly beneficial to the voter. He or she will be able to relate that to the policies of the various parties, including independents who put themselves forward for election. It will give the voting public an opportunity to come to a conclusion.

A famous man, far more famous than any of us, said that the voting tendency of the members of the public was in inverse proportion to their socioeconomic status. He was probably right, because there are people who have to vote very carefully for very valid reasons. They must make that decision on profound grounds, while others might do it for frivolous reasons on the basis that it does not really matter anyway.

I thank Deputy Eoghan Murphy for bringing the matter before the House in this fashion to give us an opportunity to discuss the pros and cons and to streamline it further after review and revision. It can try to convey to the people what we are really about.

It also helps to generate a debate on reality. I have heard people in this House saying the money will come from somewhere. Where will the money come from? They also say there is no need for cutbacks or austerity as if austerity was a substitute in order to punish people. It is about housekeeping, which is of great importance. No one in the current climate likes what must be done. I am not getting into the business of blaming and saying who caused it but the current situation is here. We must work around what we have to play with. If we do not do so responsibly, some future generation will talk about us in a fashion that is less than complimentary.

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