Taxation rates and the budget
Deputy Kirk asks whether Government will address the high effective tax rate on incomes above €32,000. The Taoiseach says the issue will be considered in the budgetary process, subject to available economic flexibility.
Over the weekend, the British-Irish Parliamentary Assembly met here in the city. During the course of an exchange between the Minister of State at the Department of Finance and a number of other delegates, the Minister of State candidly told us that all those earning incomes over €32,000 are now paying taxation at the rate of 53%, including the universal social charge. Is the Economic Management Council, EMC seriously examining the issue in the context of the law of diminishing returns? Will there be any proposal from Government to alleviate the serious pressure of taxation on many people working in our communities?
Comment on this
As a former holder of this office, Deputy Kirk knows that he should tell me what legislation he is referring to here.
Comment on this
As Deputy Kirk is aware, this matter is deemed to be a priority by the Minister for Finance. The budgetary process will commence shortly. Clearly, we cannot say yet what economic progress the country will make but the question that the Deputy raises is one to be considered as part of the budget. It is one that the Minister has already identified, provided he has flexibility to do something here.