Patrick Nulty (Dublin West, Labour) | Oireachtas source

I hope to make a point in a robust but respectful way, as I support the amendments. Section 2 is the crux of the disagreement with the legislation. The argument is that only salaries over €65,000 are being touched, as they are on the higher end of the salary scale. That may be so but there is a principle of equality and this only has an impact on workers in the public sector. The fairer approach would use our pay as you earn, PAYE, tax system to tax people based on earnings, regardless of who is the employer. That would generate the savings required, as answers to parliamentary questions provided by the Minister's colleague, the Minister for Finance, Deputy Noonan, indicated last week. A tax increase on incomes over €80,000 up to €125,000 and from a €125,000 upwards would provide those savings. That is why I disagree with the Minister and this legislation. The PAYE tax system, instead of pay cuts, is the way to make those on higher incomes contribute more. As a result, I support the amendments and ask the Minister to engage with the point constructively. Progressive PAYE taxation is the way to go instead of pay cuts that will only have an impact of one section of the employment group in our country.

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