Fianna Fáil Finance spokesperson Michael McGrath has hit out at Fine Gael plans to give an unlimited tax cut to people earning over €100,000 while at the same time bringing individuals earning as little as €250 a week in to the tax net.
Michael McGrath commented: “Fine Gael is planning to give a tax cut of over €7,000 to someone on €200,000 a year and €10,000 to a person earning €300,000 a year. Given that resources are limited over the next five years, there is no justification for this unlimited tax cut.
“What is even more alarming is that while Fine Gael say they want to have taxes “as low as we can afford to have them” they want to apply PRSI to people earning as little as €250 a week.
“This is simply unfair and together with their unlimited tax cut sums up a Fine Gael ideology which is based around looking after the wealthiest in society while those on lower incomes can fend for themselves.
“By contrast Fianna Fáil is limiting the cash benefit of our USC proposal to the first €80,000 of income for all taxpayers.
“Fine Gael’s plan to withdraw tax credits from those earning over €70,000 will make the income tax system even more complicated than it is presently.
“There is scant detail on this proposal in the manifesto document even though Fine Gael believes they can raise €260m from it. When this issue was previously raised in the Dáil Minister Noonan declared that Revenue did not possess the necessary IT systems to be able to implement stating “until such time as both the Revenue Commissioners and employers move to a real-time PAYE system and away from the current system of annual returns, the tapering of tax credits for employees would not be operationally possible.”