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

I acknowledge that there are differences of opinion about this. The next budget at a headline level must have an adjustment of €2 billion so it is not that we are flush with money to give away. What I am trying to do is put the debate into a space where we are not trying to endear ourselves to the electorate or do pre-election things. What I am saying is that we will be consistent with the policy I followed. I acknowledge that people do not fully agree with the policy but the policy is that if we are making tax changes, we will do so in a way that has a labour market effect. In other words, we make it easier to create jobs. Of course, the Deputy is right. It is quite clear that out of people who work, 856,000 people do not pay income tax at all. This will have no effect on them because they do not pay any income tax. Of course, it will have no effect on people with an income below €32,800 because it is only at that figure that one goes on to the higher rate of tax. There are other things in the tax code that we can debate and I am sure we will come back to this on several occasions. I was simply identifying for the purpose of guidance where I see a priority but I am open to any other suggestions depending on resources.

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