Seanad debates
Tuesday, 18 February 2003
Finance and Related Matters: Statements.
I hear concerns about inflation. They are aware that it is no longer in our own hands to control the rate of inflation, which is double what it is elsewhere in Europe. I speak from a business point of view. I do not agree at all with Senator O'Toole and I agree entirely with Senator Mansergh, who talked about the reduction in the percentage tax actually increasing the take, both in capital and company tax. The assumption that one will make more money if one increases the percentage of tax or increases prices by X per cent is not correct. If a business increases its prices by X per cent it will probably lose business. An increase in tax percentage will probably result in less earnings because less tax is earned on that basis. The Minister for Finance, Deputy McCreevy, has the real example with the betting tax. Every time he reduced it he got more money in.
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