Sinn Féin champions pay cap and new tax band

16/11/2009 - 13:34:59
A third rate of income tax for high-earners and a €100,000 cap on public sector pay were among a range of tough budget measures outlined by Sinn Féin today.

TDs’ and ministers’ salaries would also be limited to the six-figure sum.

The party claims its budget proposals would raise €7.62bn and serve as an alternative to cutting vital public services or social welfare.

A spokesman said: “The party shows with our carefully considered and costed proposals that it is possible to raise the finance needed to maintain frontline public services, protect those in need, reduce the deficit in State finances and provide an economic stimulus package to create jobs.”

“There is a fairer and viable alternative to the Government’s slash and burn approach. We must invest in jobs and protect public services and social welfare — to protect citizens, not bank managers and the wealthy," said Finance spokesman Arthur Morgan, TD.

The party said its plans could slash the budget deficit by €3.7bn and raise enough cash to fund a €3.94bn stimulus package to help kick-start the crumbling economy.

The majority of the proposals – €5.62bn – would come from tax measures based on wealth and the targeting of wasteful spending.

The proposals include:
- A third tax rate of 48% on individual earnings in excess of €100,000 - Raises €355m
- Capping the maximum salary available to public servants and semi-state bodies at €100,000 – Saves €450m.
- Capping TDs’ salaries at €75,000 and Senators’ salaries at €60,000, with a maximum cap of €100,000 and €80,000 respectively – Saves €4.8m.
- Standardising all discretionary tax reliefs – Raises €1.1 bn.
- Introduce a 1% wealth tax on all assets worth more than €1m, excluding farmland, regardless of residency rules – Raises €1.6bn.

The party also proposes a range of property-related measures.

These include:
- Abolishing all remaining property-based tax reliefs (on property development, not principal home mortgage interest relief) – Raises €43m.
- Scrapping mortgage interest relief for landlords – Raises €285m.
- Increase tax on second homes to €600, to include holiday homes and rental properties only – Raises around €120m.

Other money raising schemes range from increasing Dirt to 5% to hiking Capital Gains tax to 40% and abolishing the PRSI ceiling.

Sinn Féin also proposes a €3.218bn economic stimulus package to boost jobs, and a €723m scheme to protect struggling households.

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