Dáil debates

Thursday, 3 July 2014

Ceisteanna - Questions - Priority Questions

Tax Yield

10:40 am

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party) | Oireachtas source

I do not agree with the Minister about public sector workers. The economy would benefit considerably from the increase in consumer spending that would follow increases in public sector pay. Wealthy people who receive tax cuts tend not to spend in the economy to the same extent. Dr. Micheál Collins of NERI has estimated that an hourly increase of €1 for a low-income worker is equivalent to a gross increase of €1,956 per annum.

The Minister omitted to mention how the social welfare system subsidised part-time and low-paid work. These people could be given pay increases. JobBridge, the family income supplement, FIS, and so on are costly to the general taxpayer and are subsidising employers in taking on workers at low pay.

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