Peter Mathews (Dublin South, Fine Gael) | Oireachtas source

The sum of €3.5 billion is the start of this problem. The troika states we can operate according to our own sense of justice and equity but that we must make a saving of €3.5 billion. We have all accepted that. In principle, all things being equal, a property-based tax to fund local services is acceptable in normal circumstances. We are not in normal circumstances, however, we are trying to turn a tanker in a very short period. When doing so, one looks to the strongest shoulders. As the Minister, Deputy Noonan, will know from our internal meetings, I propose that there be, for three years, a national recovery levy on high incomes, namely, incomes in excess of €120,000. I stipulate €120,000 rather than €100,000 in the interest of families. Stability and support for families have been eroded over the past 15 years, initially with the individualisation of taxation. This is a sinister form of taxation that is anti-family. Erosion has occurred in other ways although I cannot elaborate on them now.

I commend Deputy Mitchell's contribution in which she pointed out the unfairness in terms of Dublin vis-à-visDonegalwith regard to what it costs to run local authority services per capitaand how they can be funded. This taxation proposal is not fair in that regard.

There are three shoulders that could bear this load. First, a three-year national recovery levy of 4% could be placed on those on high incomes - that is, salaries of more than €120,000 - across the board; second, a 2.5% levy could be placed on multinational corporations or indigenous corporates, which would raise another €600 million at a minimum. If one adds up the revenue that would be derived from those two levies, it would amount to €1 billion. Third, a 5% betting tax could be placed on turnovers of €5 billion, which would produce further revenue. Those are three simple ways this revenue could be raised - three pools of reserves that could shoulder the burden of the sudden change that is needed for the next three years.

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