Prior to Budget 2015 we outlined a series of six priority areas for tax reform
· Simplify the tax code
· Recognise the importance of ability to pay
· Reform the Universal Social Charge
· Increase tax credits
· Address the anomaly where the self-employed are taxed more harshly
· Increase the threshold for inheritance tax
We are again proposing a fairer and more progressive tax regime for 2016:
Income tax & Universal Social Charge
The total income tax take in 2015 will be over one third higher than 2007, while other taxes have not yet recovered to peak levels. This demonstrates the extent to which correcting the public finances has fallen on employees.
The first element of the income tax package we are proposing for 2016 is an increase in the personal tax credit of €100 for a single person (€200 for jointly assessed married / civil partner couples.)
We propose to combine this with a substantial increase in the range of income covered by the lower USC bands.
Earned income tax credit for self-employed
We propose introducing this an earned income tax credit of €500 in 2016 at a cost of €41m with the aim of equalising the treatment of the self-employed and PAYE workers within 3 years.
Fianna Fáil would immediately begin the reform of DIRT tax by reducing the rate to 40% in 2016 at a cost of €8m.
Capital Gains Tax and Capital Acquisitions Tax rates
We propose beginning the process of reforming capital taxes by reducing the rate of CGT and CAT by 1% in 2016 at a cost of €27m.
Our proposal is to increase the current Category A (parent to child) threshold by €75,000 to €300,000 with pro rata increases in other categories at a cost of €80m. We intend that this would be further reviewed in Budget 2017.
Local Property Tax
The government should use the opportunity of the forthcoming Finance Bill to scrap the revaluation also deal with legacy issues surrounding homes affected by pyrite which are currently liable for local property tax.
Fianna Fáil submission to Public Consultation on Tax and Entrepreneurship (1).pdf
|Date:||10th August 2015|
Fianna Fáil believes in a fair and balanced taxation system which rewards work, funds vital public services and encourages enterprise.
Making our capital city a vibrant place to live, work and raise a family.
End the mortgage rate rip-off.
Addressing house prices by supporting first time buyers and tackling rent levels.
Fighting for a fair recovery across the entire country.