Pearse Doherty (Sinn Fein)

I move recommendation No. 2:

In page 12, line 40, to delete "€18,304" and substitute "€37,000".

This recommendation aims to increase the number of people who are exempt from the 1% levy. The Government decision to take cash from households at a time when their spending power has been severely diminished is a regressive one. Sinn Féin proposes that the PAYE tax credit be increased by 5% to give households more purchasing power at a time when inflation is persistently above 4% and energy costs are the subject of double-digit increases. The €18,000 breather does not prevent low income families from being penalised. Given that our economy is based on consumption and spending, why is the Minister for Finance stymying the spending power of households that could help to ease the recession at a time when economic activity is plummeting? Why did the Minister not remove the PRSI ceiling to ensure that low income families are not touched by this tax increase? This recommendation proposes to increase the €18,000 threshold, which my party feels is far too low. We want those earning under €37,000 to be exempt from the 1% levy. The Government should accept the recommendation because it would set a fairer threshold.