Seanad debates

Tuesday, 25 March 2003

Finance Bill 2003 [ Certified Money Bill ] : Second Stage.

 

The budget is very much in line with the new social partnership agreement, Sustaining Progress. I am sure recommendations will be brought forward on Committee Stage as part of an attempt to fully index tax allowances. The taxation section of Sustaining Progress does not say anything about tax indexation, which, frankly, is impossible this year. It states, "The objective is to ensure that the tax system facilitates a level of economic growth sufficient to maintain high levels of employment and quality public services, is fair and able to adapt to changing economic circumstances". It also states personal tax reductions will be focused on keeping those on the minimum wage out of the tax net. We have achieved and are maintaining the target of 90% in this respect and moving towards a target which will ensure 80% of all earners will pay tax at not more than the standard rate.

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