Brian Leddin (Limerick City, Green Party) | Oireachtas source

I welcome this budget. I will address specifically the issue of progressive taxation. I believe that most people want to see a fairer society that redistributes income from the well off to the less well off. Despite some of the statements made in the House today and yesterday, carbon tax is a key progressive tax that protects households on lower incomes while still incentivising a reduction in greenhouse gas emissions. Through the carbon tax we will raise an addition €174 million in 2022. Of this additional revenue, over €100 million will go towards the increase in social welfare payments, with the remainder going on retrofitting of housing for lower income groups as part of our commitment to retrofit 500,000 homes by the end of the decade. Yes, everyone has to pay carbon tax according to how much carbon emissions they cause, but we are redistributing all that extra money raised to protect the most vulnerable. To be clear, 30% of households with the lowest incomes will see a bigger proportional rise in their disposable income compared with wealthier households. Families across Europe are seeing an increase in their heating and electricity bills because of price rises on the European market. We are better placed than other countries to help the less well-off as global energy prices increase because we have revenues from the carbon tax increase to distribute. If we did not increase the carbon tax, people on lower incomes would be worse off because we would not have this money to redistribute.

I reject the populist arguments against carbon tax. Taxation and fair redistribution are at the core of social progressivity. I welcome the increase in carbon tax this year and every year this decade that will make this country a fairer and better place.

See this speech in context