Minister Alan Kelly has stressed the key messages from the budget, re-iterating that although tough, it has been fair. “Jobs, growth and fairness have been the key issues for this Budget: the deficit targets will be met, no cuts in basic social welfare rates and the USC has been removed for over 330,000 workers” stated the Minister
“No worker in Ireland will see their wages reduced in January by this Budget.
The Labour Party had worked hard to ensure those on low incomes were spared the brunt of the €1.6bn tax increases and extra charges in this year’s Budget, which resulted in a commitment to raise the exemption limit for the USC to €10,036 from €4,004, a move which will benefit struggling part-time, low-paid and seasonal workers”.
The Minister continued: “The incentivisation of farm transfers and partnerships shows the commitment to Agri-business and the reductions in Stamp Duty and increases in Mortgage Tax Relief show that we are committed to helping homeowners.
As well as this initiative, the Budget vows to protect middle income families by standing by its commitment to maintaining the current rate of income tax. This will provide security, certainty and comfort to families that have seen their tax burden increase dramatically in recent years”.
“I am also pleased with the supports for business outlined in this Budget: including maintaining our corporate tax rate, the Foreign Deductions earnings, R&D initiatives, Micro Finance Loan and the reduction in VAT for district heating”.
Furthermore, the significant moves on tax justice through a minimum effective tax rate, increases in capital taxes and levies on property reliefs will ensure that very high earners, who have sheltered income from tax for years will now have to pay their fair share. The scandal where these earners could virtually write off their entire tax bill in reliefs is now over. I believe that this budget ensures a fair distribution of the Tax burden through increased taxation measures on the wealthy, especially the abolition of the Citizenship condition for the Domicile Levy. Those that can pay should pay and this Budget has ensured that this happens”.
Given the financial difficulties the country finds itself in, I am pleased that Labour has ensured fairness and balance in the taxation statement”, concluded the Minister