Plan to tackle income poverty
12/10/2005 - 18:42:49Tax breaks for the rich need to be overhauled so that the poor get more benefits from the tax system, the Combat Poverty Agency said today.
The Agency, which advises the Government on policy in the area, today unveiled a set of pre-Budget proposals which it claimed will cut income poverty by 2%.
It called for a series of welfare measures, tax changes and social expenditure initiatives to make a decisive impact on poverty, especially among children.
CPA director Helen Johnston said: “All proposed or existing tax reliefs must be subjected to rigorous economic evaluation.
“Only the tax reliefs that deliver a clear net gain to the economy and wider society should be continued.”
“Currently, people who benefit from tax breaks don’t really need them.”
CPA told the Oireachtas Finance and Public Services Committee today that individual social welfare rates need to increase by €15 per week and tax credits by €45 per annum.
Ms Johnston added: “The Budget has a central role to play in tackling poverty, especially the use of the tax and welfare systems to redistribute resources to those on low incomes.
Today’s submission also proposed significant rate increases and structural reforms in the social welfare system, including child income support and in-work benefits.
Other measures related to childcare, savings and pensions.
Latest figures indicate that 23% of the population (903,000 people) are in income poverty, while 9% of the population (375,000 people) experience both income poverty and deprivation.
“The Irish rate of income poverty is amongst the highest in the EU and is 30% higher than the European norm,” added Ms Johnston.
Income poverty in Ireland has increased by a quarter since 1997.
<-- BACK TO STORY