Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move amendment No. 7:

In page 11, after line 34, to insert the following:

“Report on tapering out of income tax credits

11.The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on tapering out tax credits for incomes between €100,000 and €140,000 at a rate of 2.5 per cent for each €1,000 earned.”.

Amendments Nos. 7 and 8 call on the Minister to prepare and lay before the Dáil a report on progressive tax measures as we emerge from the Covid-19 crisis. In particular, it calls for the tapering out of personal and income tax credits for individual earners who have individual annual income in excess of €100,000 at a rate of 2.5% for each additional €1,000 over €100,000. Amendment No. 8 calls for an additional solidarity tax for individual incomes above €140,000. A similar measure to that provided for in amendment No. 7 was introduced by Gordon Brown as Chancellor of the Exchequer in Britain under a Labour Government many years ago. This progressive measure would bring in €236 million to the State in 2021.

It is important that as we emerge from the Covid crisis we acknowledge that there will be a sizeable deficit and higher public debt. If we are to be serious about greater access to services, dealing with the housing crisis, and an enhanced role for the State dealing with the climate challenge, we need to have a serious conversation about how all this will be funded. The Government is not being straight with the people about this. In fact, the programme for Government has ruled out any increases in income tax regardless of the level of earnings. Indeed, it suggests that the deficit will be reduced by a combination of carbon, plastic, and sugar taxes. That will be some challenge.

Fine Gael and Deputy Varadkar in particular attacked Sinn Féin during the election because we had the audacity to suggest that we might need to look at PRSI increases. He claimed this would cause huge amounts of job losses. The Tánaiste has taken to Twitter where he is now calling for PRSI increases. Sometimes some lead and others follow, but at least they are starting to talk about how we will deal with this deficit.

We need an honest conversation. Those who have the ability to shoulder an additional burden should do so. Amendment No. 7 proposes that the tax credits individuals get to reduce our tax liabilities should not be available to those at the highest levels of income and they should be tapered out on a progressive basis when individual income reaches €100,000.

I ask the Minister to consider these measures and bring forward a report. He has no problem considering other measures which effect low-income households in the form of carbon tax, which hits lone parents hardest as well as rural dwellers. Will he consider whether we should ask those at the highest ends of society earning in excess of €140,000 individual income if they should pay a little more or if they can go without their full tax credits?

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