Sean Barrett (Independent) | Oireachtas source

Last week, the Nevin Institute showed that living standards have decreased by 20% during this recession. It is worse for those on low incomes, who have taken a bigger fall.

In dealing with other Ministers, I have come across a school of the new right in the Department of Finance. They say that what is wrong with the Irish tax system is that so many people are exempt. I had discussions with the former Minister, the late Brian Lenihan, about that. They designed the USC and the water charges. A Canadian expert at the banking inquiry the other day said that about 50% of Canadians are outside the income tax code. There is a view that what is wrong with the Irish tax code is that low-income people are not taxed enough, but the reason they are not is that their incomes are low.