Tax system 'should penalise the wealthy'
Social campaign think-tank Cori Justice today called on the Government to create a fairer tax system, penalising the wealthiest people.
In its latest policy briefing as Fianna Fáil prepares to hold its private think-in, the group said many existing tax breaks are of far greater benefit to the better off than average earners.
Cori head Fr Sean Healy said reforming these reliefs would provide the extra money needed to protect the less well off in the face of massive Budget spending cuts.
“This would produce additional resources for the Exchequer which would be good for the economy and good for the vulnerable,” he said.
Fr Healy used the example of 20% and 41% reliefs available for dental care.
If a person on the average industrial wage (€34,000) faces a bill of €1,000 for dental work they can claim relief at 20%, worth €200.
But a person earning twice the average can claim relief at 41%, savings of €410.
“There is something profoundly unfair about this situation where a person on a lower income has to pay substantially more for the very same treatment compared to a person with twice his/her income,” he said.
Cori said tax reliefs should be offered at a standard rate of 20% across the board.
Finance Minister Brian Lenihan is currently drawing up a Budget, to be announced six weeks early in October, designed to go some way to repairing the €5bn hole in Exchequer figures.
Fr Healy urged the Government to prioritise healthcare focusing on primary care teams, not increasing consultants’ salaries.
In education he urged the Cabinet to reverse policy by funding primary teaching rather than the fourth level sector.
Elsewhere, Fr Healy said more social housing should be provided along with extra welfare supports for the unemployed and more resources for the working poor.
Cori estimates 30% of all households at risk of poverty are headed by a person with a job.
