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

The Deputy always forgets the difference between gross income and net income. A person with a gross income on PAYE at a salary or wage of €70,000 a year, which is using an example of someone who is very wealthy, pays more than €25,000 in personal income tax. Accordingly, the net income is less than €45,000. We are directing it from that level down. It is not from €70,000 down but €45,000 net down. That is where we are focusing on that category.

Above that, people still get reductions in their taxes arising from the measures in the last budget. They do so, however, at the same level as somebody on €70,000. The reason we adopted these policies is that if one taxes something, one tends to get less of it while if one relieves tax, one tends to get more of it. These taxes are taxes on employment. Our strategy has been successful. By reducing personal taxes and VAT from 13.5% to 9% in the hospitality industry, we have created in excess of 100,000 jobs since 2012. The object of our tax policy is to grow the economy and to create jobs. It is a macroeconomic instrument. It is not principally about giving money to certain people.

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