Seanad debates

Tuesday, 6 December 2016

Social Welfare Bill 2016: Committee Stage

 

2:30 pm

Photo of Gerard CraughwellGerard Craughwell (Independent) | Oireachtas source

The social welfare contributions for councillors over 66 years are being repealed. The point I was making was that they had been paying class K contributions for the past five or six years.

I appreciate there is a problem with class K contributions. In 2013, class K was extended to all unearned income, which included things such as rental income, income from shareholdings, dividends and so on. The point is that if we look at it in the round, it is a tax. It is a tax on unearned income, a tax on public service.

In fairness, the Minister has shown that he understands that concept. It would be far better to deal with it now and get it out of the way. Let the Minister for Finance bring in a levy on public service. I will pay it. I have no difficulty whatsoever paying it, but it should be done honestly and straight. The people who have significant income from shares or rent should be hit with a levy as well. They will probably pass it on to the poor unfortunate tenant, but let us not use the social insurance system to collect a tax. The Minister has an opportunity to do that now.

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