Alice-Mary Higgins (Independent) | Oireachtas source

Of course, when we talk about a rate of tax of 46%, we are talking about that as the rate on that portion of the income above the marginal rate. That factor can sometimes be blurred. It is also worth noting that Ireland has one of the highest levels of income inequality in the European Union. There is a redistributive function through our taxation system but it is redressing extremely high income disparity and income inequality. If we are committed to the idea of progressive taxation, a third level is something that perhaps needs to be looked at down the line, and that would be consistent with a progressive system. It would be recognising that, for example, somebody earning €140,000 is not the same as somebody earning €30,000 or €40,000. It would be reasonable that somebody earning €140,000 might pay a higher rate than a person who has slipped into the marginal rate at €40,000 or so, as has been described.