Seanad debates

Thursday, 12 November 2009

11:00 am

Photo of Paschal DonohoePaschal Donohoe (Fine Gael)

I fear that, owing to what is happening with income tax and decisions that have been made concerning the social welfare system, there is growing evidence that the same situation could currently exist.

I want to make two practical suggestions to the Leader in this regard, the first of which adds a valuable dimension to the discussion taking place about the reduction of the minimum wage. If any such reduction takes place it would further widen the difference between those who are working and the unemployed. Second, there is a discussion on widening tax bands and increasing tax rates for low to middle incomes. However, given the engagement between that and the social welfare system, the incentive to work and earn more would be reduced. This is an important issue and if time were devoted to debating it here, it would be time well spent.

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