Paul Murphy (Dublin South West, Anti-Austerity Alliance) | Oireachtas source

The Government's policy for a period of years has been to provide for reductions in the USC. The biggest benefits of the reductions, in the way the Government has provided for them, have gone to those earning more than €70,000. It has been part of reframing by the Government and Fianna Fáil what a middle income earner is, when the reality is that 93% of workers earn less than €70,000.

The Government states there is less income inequality here than in other countries but comparing the overall share of income in the 1980s with what it is now shows that the top 10% have increased their share from 42% to 54%, including throughout the course of the crisis.

A myth is repeatedly stated, to the point where it becomes accepted as fact, in the shape of the idea that we have a very progressive tax system. This claim is based simply on the income tax code which is the progressive element of the tax system. As for the tax system in the round, including both indirect and direct taxes, a study conducted by Micheál Collins of the Nevin Institute found that the top 10% and the bottom 10% paid the same portion of their income in tax. Those who are less well off make most of their contribution through indirect taxation, while those who are better off make it in direct taxes. We are simply requesting a study, as having information enables us to make policy decisions, but the Government does not even want us to have that information.

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