Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I have listened to Deputy Doherty. Issues such as the role of income tax credits and the future of our income tax code can be, and I am sure will be, considered by the commission which the Government will put in place on taxation and welfare which will provide an input to the Government and the Oireachtas on decisions we may have to make in future to ensure we can pay for better public services that will be needed and changed public services that might be needed in the aftermath of Covid-19. However, I have no doubt that whatever proposals the Government or I bring forward, they will be opposed by Sinn Féin.

I find it extraordinary to hear Sinn Féin talk about the need for tax measures to reduce our deficit when Deputy Doherty calls for the abolition of carbon taxes and the local property tax in discussions on the Finance Bill 2020. Deputy Doherty was very willing to quote the Economic and Social Research Institute, ESRI, earlier in the debate. We will not hear him quote the institutions and experts who argue that broadening the tax base through changes to carbon taxation and property tax plays a valuable role in ensuring we have the money to pay for the public services we need.

Deputy Doherty will no doubt stand up and make a speech saying I am unwilling to raise taxes on those who have more. He will not acknowledge the fact that we already have a very progressive tax code. He may surprise me by acknowledging that those who have more already pay more. I would like to hear him acknowledge that one of the taxes he wants to abolish, local property tax, is a very effective way of ensuring that those who have a higher level of wealth and reside in homes that they own pay a level of tax that reflects that.

The commission on taxation will be able to advise the Government, the Oireachtas and me on what we need to do to ensure a tax base sufficient to pay for the changes we will need to make to public services. When we publish that report and steps need to be taken I will not hold my breath waiting for Sinn Féin's support. The measures that currently allow us to pay for public services are the ones Sinn Féin seeks to repeal. In a few moments we will be debating carbon tax. We will not hear those who oppose it acknowledge the changes made to the social welfare code to ensure the most vulnerable are protected from carbon tax. It is just not credible for Sinn Féin members to talk about their commitment to tackling climate change while telling people we can do that without higher taxes on carbon. It is a difficult argument and for many it is a difficult sell. These are the changes we need to make if we are to decarbonise our economy. We are using the money raised to protect the most vulnerable. These issues can be looked at by the commission on taxation, but one can make a case that a higher marginal rate of tax for those who are earning more can and does affect certain types of jobs we want in our country, which in turn facilitate the creation of other jobs.

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