Alice-Mary Higgins (Independent) | Oireachtas source

On the Minister's general point, he will be aware that we are not in a position to suggest concrete amendments to the Finance Bill because of the potential cost to the State. Therefore, when we make these recommendations, in many ways we are seeking to influence next year's budget. The budgetary process in Ireland tends to focus on the reveal of budget day and the pressures in advance but very strong ideas could be offered, not just from the Opposition benches but from across the House, in terms of areas that merit examination and scrutiny and areas which could be improved. The Minister should view the recommendations made by this House and the amendments proposed in the Lower House as an opportunity to inform and shape the budgetary process, to gather information with a focus not only on changes that might be made during the year but also on problems that might be identified, in order to ensure that the budget next year is responsive and properly informed. These are very constructive proposals and they should be taken as such. This is an important opportunity for those who cannot amend to offer input to this process which is so important, especially as budgets nowadays do not simply have a book-balancing function but also have a number of other obligations they seek to meet, including functions in respect of public duty, equality and human rights, equality budgeting and carbon budgeting, to which I will refer again later.

In terms of the wealth tax, the Minister has spoken about taxes that are already effective.This could be another tax that would be also effective. It would target a very specific and very small cohort that has very substantial wealth.

Regarding the progressivity of our income tax system, the Minister will be aware that in past years I have put forward proposals for a higher level tax. There is a situation where those who are on €60,000 or €50,000 and those on €250,000 or €300,000 are paying the same rate. It is reasonable to have a higher level of income tax at that level, especially when, for example, the cap on bankers' earnings is being removed so they can potentially move beyond €500,000. It is very reasonable that we follow through on the progressivity and look at the prospect of those with the very highest incomes contributing more. That can be done through income tax but another way that it can be picked up is through something like this wealth tax. That is why I am proposing these measures. I am concerned. Ireland is an outlier. For all the progressivity of our tax system, we are moving towards very high wages at that top level while at the bottom level there is stagnation and a pooling of incomes.