Fidelma Healy Eames (Fine Gael) | Oireachtas source

OK. The House knows what I mean - giving people their say. In Germany, which is the country we seem encouraged to look up to so much and which riles people in this country due to the fact that we bailed out its banking system, the top tax rate only kicks in at €225,000. That is seven times the figure here. I asked myself what would be fair here so I looked at the average industrial wage. Correct me if I am wrong but according to the CSO, the average industrial wage in February was €43,101. Our high rate of tax kicks in at €10,000 less than the average industrial wage in this country. All I am asking the Minister of State to do is, and I am asking both sides of the House to join with me on this, ask the Minister to carry out a calculation for us. I am asking the Minister to figure out and come back to us within three months with a report laying out the cost to the State of significantly increasing the income threshold at which the top rate of tax would kick in.

The Minister can work out the meaning of "significant" from his point of view but I am asking him to determine what the cost to the State would be if the top tax rate kicked in at the average industrial wage. What would happen if we could increase the income thresholds significantly? It would first reduce the tax burden by taking more people out of the top rate and putting them on the standard rate. The Minister spoke about that also. For the people on over the average industrial wage it would reduce the amount of income that would be charged at the 40% rate. Given that they pay the universal social charge, USC, PRSI, etc., on top of that, never mind all the stealth taxes such as property tax, the septic tank charge and, soon, water charges, they are paying a good deal in taxes.

Does the Minister know that in terms of our incentive as a nation for labour force participation, Ireland is 132nd out of 144 countries. Why work? Nobody is incentivised to work when the top rate of tax kicks in at €32,000. One could not rear a family on that. One certainly could not buy a house on it.

I am sure the Minister will say he thought it was a sensible idea when he spoke with the Minister, Deputy Noonan, to accept this and prepare that report. He might not say that but even if Senator Paul Bradford or myself had never proposed it, he should implement it because he needs to figure out how to take the people of the nation out of the quagmire in which they are burdened. I accept fully that we must have a tax debate in which we would examine how we fund our nation, including the provision of services, put money back into people's pockets and grow the economy.

In the report I am asking the Minister to include I want to know the definition of a significant increase, the cost of that and whether there would be a knock-on effect on services. What would be the cost if we increased that threshold to the average industrial wage? I also want the Minister to do a cost benefit analysis on how it could kick start the economy. That is the area the Government is not good at assessing. If we put more money back into people's pockets, what impact might that have on the entire economy, not just on Galway city or the capital but on rural economies up and down the country where, thankfully, a good few people are working. What impact might that have on attracting our talent back to this country? There is a difference between talent and skills. We all know skills are needed but talent is creativity and once talented young people are mobile, and one is largely mobile when one is single, does not have children or when one has a partner who is prepared to go with one, one will source out the economies that can offer good tax rates and good opportunities.

The eldest daughter of a neighbour of mine is 26. She is a primary teacher and she has a boyfriend who is 26 or 27. One of them had got a post in the United Kingdom. The other was interviewing - one is a primary teacher and the other a secondary teacher - but they said that they were a couple and unless they got the deal they wanted they would not stay in the country. They got the deal they wanted and will work within 15 minutes of each other's location. The point I am making is that they are mobile. We need that talent here. Why do we not have those fine young people educating our children?

One of my children is losing an after-school teacher because she is emigrating. I am concluding.