The Social Democrat’s Liam Coyne says Fine Gael’s plans to abolish the Universal Social Charge will let the rich off the hook when it comes to paying their fair share of taxes.
He says their plans, centered around a promise to scrap the USC between now and 2020 will enhance the wallets of the wealthiest at the expense of public services including health, transport and education.
What Enda Kenny and Michael Noonan are proposing will take anything between €3.7bn to €5bn out of the annual tax take.
To help pay for this FG says it will bring in an additional 5% tax for those on €100,000 or more. FG also wants to reduce the point at which workers begin to pay PRSI from its current rate of €18,300 to €13,000.
FG’s says Individuals on over €100k would not retain the PAYE or new Earned Income Tax Credit. However they would retain any other tax credits they are currently entitled to.
“This will only benefit the wealthiest in our society who we all know traditionally don’t pay much by way of tax.” The USC ensured high earners did make a contribution to the exchequer that reflected their income.”
“There was no way out of getting out of it.” Liam said. FG’s plan to scrap the USE, vastly reducing taxes paid by high earners, are unfair, and unjust.”
“What FG wants to do is a classic robbing from the poor to satisfy the rich.” “Binning the USC is a step backwards to the mentality of Bertie Ahern and Brian Cowan, which landed Ireland in such dire trouble in the first place.” he added.
The Social Democrats want to see Ireland adopt a northern European social model with a strong focus on good and better services. Those services, like healthcare and transport must be paid for. The best way to do that is keep the USC, while introducing measures to reduce the cost of living.
Unlike FG the SD’s don’t want Ireland to mirror the US where you have to pay the equivalent of hundreds of thousands of Euro annually for college fees and healthcare, while public services are underfunded and downgraded.
FG’s economic plans and proposed low taxes for the wealthy are on a par with what Donald Trump, George W. Bush and Ronald Regan offered US voters.
“I lived in the US for some time and I certainly don’t want to see the system they have replicated in Ireland,” said Liam. If FG is returned to power along with Labour, Fianna Fail or the Michael Lowry band of independents, the abolition of the USC will become government policy.
FG thinks things are only going to get better from now on. What is scary is by promising to reduce taxes FG are essentially betting on the global economy being good to Ireland. That mistake was made in 2008 and look what happened.
FG plans can only be described as “Ostrich economics”. They are going to stick their head in the sand, pretending all is well while ignoring any sign of trouble coming down the road. It is a repeat what Fianna Fáil did in the decade before the crash in 2008.
“Nobody wants USC, we would all rather if we did not have to pay it. Given the position Ireland’s finances are in it would be sheer folly, and economic madness to abolish it just to curry favour with voters in advance of an election.”
The SDs want to leave the USC in place, while introducing real, practical and doable measures to reduce the cost of living.” Simply cutting income taxes, as most other political parties are promising to do, won’t address the problem of spiraling costs.
In fact, cutting taxes is likely to increase general demand in the economy and drive up costs even further. These costs have also undermined competitiveness, drive up prices and fuel wage pressures.
Liam was also critical of Sinn Féin’s proposals concerning the USC. It wants to retain the USC for the bulk of workers, while taking 15% of earners out of the USC net by exempting those on less than €19,500. That costing the exchequer almost €90m.
It plans to abolish Water Charges, costing €270m, and property tax, costing a further €480m.
To pay for this it says it will introduce a wealth tax and an additional 7% tariff on those earning over €100,000, while also reducing tax relief on pensions.
This wont work either as SF will take from one extreme to the other by effectively introducing a punitive tax system.
Instead of having a more balanced and fairer system SF’s bald “wallop the wealthy with taxes” approach will drive money out of Ireland and ultimately hinder any economic improvement.
Such a taxation system is a throwback to the bad old days of the 1980s where most middle earners found the taxation system punitive in the extreme.
It does not matter what Labour say on the USC issue as we will just get FG’s proposals implemented should they reunite in coalition with FG.
Equally no matter what FF promises, no matter what they propose, they cannot be trusted to run the countries finances.
The Social Democrats will not make promises we know we cannot keep. We will put the long-term needs of our society ahead of the short term bribes to the electorate.
What we can’t afford is another lost decade with the old firm political parties blaming each when they are equally culpable for the “very fine mess” we are in.
The SD’s want the tax base be maintained, with some minor adjustments. We need to creating a modern healthcare system, support business end the housing market, rebuilding communities and support families.
The only meaningful way to put money back in people’s pockets is to reduce the costs of living. We will not erode the tax base, instead we will keep the USC as it is and use the billions it brings in on public services.
Ends.