Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I want to put into context the issues of the actual tax take. People are talking about the tax reductions in respect of the universal social charge, USC, and the widening of the tax band. The tax band will widen by €750 to €34,550. This is still below the average industrial wage and I have spoken on this issue for years. Ireland is an unusual jurisdiction in that people pay a higher rate of tax before they get to the average industrial wage. With this measure, the budget signals that we intend to move in the direction of trying to ensure those people do not pay the higher rate of tax on the average industrial wage. If one combines the USC reductions of the 2.5% rate down to 2% and the 5% rate down to 4.75%, together with the widening of the tax band, it is €300 million less in terms of income tax take. I believe that the tax take in 2011 was less than €11 billion.

That was at the bottom of the recession. The projected tax take for 2018 is €20.5 billion. That is the real restructuring in taxes between the recession and the boom. Income tax take is doubling, which is huge. That is why we are very clear that it is appropriate and correct that income taxpayers get a little bit back, namely €300 million. That is something that should be done. My time is up but I will try and get back in again if I can.

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