Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

This throws into stark contrast the discussions we had earlier. We had discussions about cross-Border workers and the Minister spoke about equity and fairness among taxpayers. Many people would ask a question about that in respect of the SARP policy being pursued by the Government. It has been said previously by me, Deputy Boyd Barrett and others, and this is probably a reflection on us in the Opposition, that if people knew this tax measure existed, there would be uproar. This is a special tax rate that only people who are earning over €75,000 and with incomes up to €1 million can avail of. It is not available to anybody else, regardless of the contribution a person makes to society. Whether one is a nurse, a teacher, a street cleaner or somebody who works in the local authority, it is not available to such workers. It is not available unless somebody is one of these special people in the eyes of the Minister for Finance. The person must be foreign, must come into this country and must have an income above €75,000. If he or she has an income of up to €1 million, the Minister for Finance will cut his or her tax bill by €111,000. He will also give him or her €5,000 for private education for the person's children and allow the person to write off the payment for his or her flights home against his or her tax bill.

As has been mentioned, 50 millionaires availed of this in 2019 - 50 people who had incomes of between €1 million and €3 million. That means each one of the 50 got a tax write-off of €111,000. The butcher, hairdresser, nurse, teacher and street cleaner all must pay tax at the marginal rate of 40%, but, by God, if you are one of these lucky 1,574 people, the Minister for Finance has brought forward a sweetheart deal that will allow you, up to a maximum, to reduce your tax liability by €111,000. This has no place in a State that believes there should be equality of treatment for taxpayers. There are many people who feel hard-pressed by taxation. We need taxation to pay for services and everything else, but they get no relief when it comes to these special measures. The SARP is absolutely outdated. Looking at the projections for the cost from 2018 to 2028, it is going to cost the State half a billion euro. That is half a billion euro in a ten-year period only for individuals with incomes above €75,000, only for people with incomes up to €1 million and only for these very special people in the eyes of this Minister, who can also avail of other special conditions as a result. It is appalling and should not be there.

There are multinationals in this State that we want to retain. There is no doubt about that. We have argued in terms of the Minister's role in trying to secure the 12.5% rate. That was impossible in the negotiations. There was a mountain to climb in that regard in the context of those who came under the OECD. We want to retain those investments, but I must make something clear. If a company feels that a so-called key person in its employment needs to have a higher take-home pay, the company must pay the person more. Do not ask for the tax that is paid by the butcher, the nurse, the teacher or the doctor to allow that person to have a reduced tax liability. It is unacceptable, it should not happen and it has no place in our tax code.

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