Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

To correct one point, it is estimated that 148,100 individuals will benefit from the increase in the national minimum wage whereas I think I inadvertently gave the wrong figure.

In response to some of the points that have been made, with regard to my party, in our campaign for the last election, from which we all draw a mandate to be in this House, we made proposals in regard to the income tax system, the entry point and changes to credits. We negotiated with our colleagues in government a programme for Government which provides for the indexation of credits and bands as incomes have begun to rise again following Covid-19.

We have made very good progress on implementing the agreed programme for Government commitment signed up to by the three parties.

It is worth making the overall point that we have a highly progressive income tax system in Ireland. It is one of the most progressive in the developed world. That has been acknowledged by the OECD and others on many occasions. If we look at the post-budget 2024 situation on a salary band basis, we estimate the top 1% of taxpayer units will pay 24.4% of total income tax and USC, the top 5% of taxpayer units will pay 48% of total income tax and USC, the top 20% will pay 79% of total income tax and USC and the bottom 80% will pay 21% of total income tax and USC. We, therefore, have a highly progressive income tax system. Deputy Doherty is suggesting we increase that progressivity even further. It is already highly progressive and, therefore, when we make changes to the tax system, it will inevitably be the case that the spread of the benefit will depend on the income profile concerned.

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