Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 88: To ask the Tánaiste and Minister for Finance the interpretation of the objective in the programme for Government of keeping average earners out of the higher band. [17297/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The commitment in the Government Programme is to use tax credits and bands to keep low income earners out of the standard rate band and average earners out of the higher band. For 2007, in terms of gross liability to tax before the application of tax credits, the position is that a person earning the average wage, estimated to be about €33,000, will not face a liability to tax at the higher rate. This is because the upper limit of the standard rate band for a single person is set at €34,000 in 2007.

The aim is to maintain that position going forward. However, I would point out to the Deputy that the commitment is to be implemented subject to the controlling economic and fiscal framework. In addition, the Government are committed to operating a responsible fiscal policy characterised by broad budget balance and a declining debt burden.