RENUA Ireland leader cllr. John Leahy has warned that; ‘’the Government is turning into an all tax and no spend contradiction in terms.’’
The RENUA Ireland leader said;
‘’Some-one is going to have to sound the alarm over the direction that fiscal policy in this country is taking.
The latest proposal by faceless mandarins in Finance that the government will raise €433 million by introducing a 43 per cent income tax rate for workers earning more than €80,000 a year is another example of how this government offers us the worst of all worlds.
Just like the 70’s they tax high and they spend low.
Increasing even further the tax paid by those who work hard to earn more than €80,000 a year is another attack on enterprise by book balancing bureaucrats.
It utterly fails to take into account that such families are paying hefty mortgages, unsubsidized childcare fees or third level fees.
There may be a defence on levying the rate only on earnings of more than €120,000 which would yield €280 million.
At the €80,000 income range it will be a greater dampener to enterprise and ambition than the current policy of imposing millionaire tax rates on those earning less than the average industrial wage.
In passing it should be noted that such a move would merely bring the top tax rate levied on PAYE workers into line with that paid by the self-employed, who currently pay a three-percentage-point universal social charge surcharge on incomes of €100,000 and more.
Increasingly working people in Ireland feel they would be better off on the dole where they would be cherished and valued by the state instead of being garnished by the state.
Given the current context who would blame them’’.