Seanad debates

Tuesday, 25 March 2003

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

 

I congratulate the Minister on many of the Bill's provisions, as he has made many radical and welcome changes to the income tax code. "Radical change" is a phrase often trotted out, but it can mean very little in real life. In this instance the Minister has made real changes to the tax code by moving over recent years to a system based on tax credits, which means that the poorest segment of society does proportionately better than the well-off. Previously the system was skewed in favour of the better-off, and there was no real effort to bridge the gap between rich and poor. Like Robin Hood in reverse, the rich got richer while the poor drifted ever farther out of reach down the poverty ladder. When the bands were widened and the allowances increased, it was the poor who lost out. Now, while both groups get the same amount of money, it means proportionately more to the less well-off than the relatively rich.

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