Seanad debates

Thursday, 11 December 2014

Finance Bill 2014: Report and Final Stages

 

11:50 am

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Senator Darragh O'Brien for moving this recommendation because it gives me an opportunity to respond to the situation relating to the home carer's tax credit. The system of individualisation has been in the tax code since 1999 and is obviously an integral part of the overall system. When first announced, the stated purpose of individualisation was essentially to ease the burden on single persons, who make up 65% of the workforce; to take workers on the average industrial wage out of the higher rate of tax; and more generally, to facilitate a reduction in the numbers paying tax at the higher rate. Prior to this, a second spouse faced the marginal rate of tax on the first euro, or punt as it was then, earned.

In tandem with individualisation, a home carer allowance was introduced to compensate couples where one spouse stays at home to care for children or other qualifying individuals.

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