Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Deputy appreciates it would be administratively quite difficult to do so and that it probably would be legally impossible. We are discussing whether to tax a social welfare benefit. In deciding that it would only be taxed in the case of some recipients and not taxed in the case of others - not so much on the basis of income but on how their employers treated them - one would be in a very thin legal position in which to make that differentiation. We are in a position where it can be either taxed or not taxed and I have decided to tax it.

See this speech in context