There is “nothing new” about Fine Gael’s proposal to cut income tax, TD Colm Burke has said.
Earlier this week, three Fine Gael junior ministers wrote an opinion piece calling for the budget to cut income tax by €1,000 for those earning €52,000 or less.
Last night, Tánaiste Micheál Martin told a meeting of the Fianna Fáil Parliamentary Party the intervention was “not helpful” and “undermines” the budgetary process.
However, Deputy Burke said nothing about the proposal should come as a surprise to his coalition colleagues.
“I think that it’s time that we give some relief to middle income earners and this is what we’re talking about doing,” he said.
“But it was part of the Programme for Government as well - so, there’s nothing new in what is being said.
“The target was that the higher rate of tax would not come into place until you earn €50,000 or more.”
Paschal Donohoe and Michael McGrath. Image: Sasko Lazarov / RollingNewsYesterday, Minister for Finance Michael McGrath confirmed there would be a cut in the rate of income tax in this year’s budget but declined to say by how much.
“What I can signal clearly is there will be a further reduction in the burden of income tax in the budget but beyond that I’m not in a position to get into any specific detail,” he said.
“The measure that was set out in the article, depending on how you design it, how to blend credits and bands, could cost anything up to €1.5 billion in a full year.
“So, I have to consider all of the demands, all of the asks, along with, of course, Minister [for Public Expenditure Paschal] Donohoe.”
Taoiseach Leo Varadkar has confirmed the State pension rate will rise in the budget and there will be a new State Wealth Fund to invest an expected surplus of €10 billion from a corporation tax windfall.
Main image: Colm Burke. Photo: Sam Boal/Photocall Ireland
