Noel Harrington (Cork South West, Fine Gael) | Oireachtas source

A sub-headline confirms that deprivation was up but poverty rates were unchanged.

With poverty, for example, it is indicated that an "analysis by sociodemographic characteristics showed that most at risk of poverty in 2013 were individuals who were unemployed." With deprivation and people describing their principal economic activities, almost 55% were unemployed. An analysis of consistent poverty rates by principal economic status indicates that consistent poverty rate was highest among individuals who were unemployed. The solution, as indicated in the motion, is to tax labour. The Minister of State has reminded us this country has the most proportionate tax system in the European OECD countries and the second most proportionate taxation system overall in the OECD countries.

The solution to the problems outlined in the motion is a route to work and sustainable, dignified employment. It is in recognising that there are problems in the country, such as intergenerational unemployment. There are major problems with jobless households, which we recognise. However, the solution to these issues is not in the motion but rather it is about engaging on a case-by-case basis with the people who need it most. We can put up schemes likes JobsPlus, with employers getting a fund of up to €10,000 for engaging the long-term unemployed. That will solve some of the problem, although it might not solve the deepest parts. We recognise that but that view is not recognised in this motion.

We have heard recent evidence from the Think-tank on Action for Social Change, TASC, or other groups about a very unequal income distribution system in this country but that is fundamentally wrong. It took figures as if there was no taxation or social protection system to forward the argument of an enormous gap between the highest and lowest earners in the country. It is clearly wrong and designed to mislead. We have a large transfer system and a very punitive taxation system. Ireland is not a low-tax economy or a low-income tax country. It has the fifth highest tax jurisdiction for personal incomes in the European Union: combined with a high unemployment rate, there cannot be a conclusion that we should tax labour more. We should tax labour less, as half of the taxpayers in the country paying the marginal rate would benefit. This would bring about a reward for work and initiative.

The motion would instruct the Minister to focus taxes on wealth, profits and top earners. We have many taxes on profits and there is a high tax on top earners. The tax on wealth is interesting, so we can examine it. The tax on wealth is essentially a proposal to tax all assets, including property, land, family possessions and heirlooms. Where I live, for example, there are people with high-value fishing vessels which earn very little for owners or deck hands. Many of those fishermen are on subsistence earnings. Farm outbuildings would be taxed, along with shops. I am only throwing out these suggestions, as we do not know what exactly would be taxed. One or two Members opposite have indicated the wealth tax would be 1% but somebody else indicated it would be 5%. The gap is enormous so if this is an example of a coherent and agreed policy from the Technical Group, we will have a problem with political and economic stability in the next year.

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