BUDGET:THE BUDGET should have focused more on tax increases and less on cuts in public spending, according to Social Justice Ireland.
In a response to Budget 2012 the organisation said the Government chose the wrong options.
“The Government does have choices. Within the parameters of the EU-IMF-ECB agreement, for example, the Government could have taken €2 in tax increases for every €1 it cut in public services as we set out in our budget choices briefing.
“This would have produced a fairer budget. An alternative is required to ensure economic recovery, a just society and a sustainable future,” said the organisation.
It added that as a result of the choices made the deepening inequality and social exclusion Ireland was experiencing would continue, the economy would remain in the doldrums, mass unemployment would persist and social services would continue to be eroded.
“The better off will continue to dodge their responsibilities and thrive while the gap between them and Ireland’s poorest will continue to widen dramatically. Many transnational corporations will continue to pay no tax whatsoever on their substantial profits while small and medium enterprises will see no real improvement in their very limited access to credit.”
The organisation also said the budget was developed with a microscope when a telescope was required. While it had paid great attention to a wide range of issues it had insufficient focus on the longer term or the wider issues that urgently required attention.
“These range from declining domestic demand to persistent long-term unemployment, from public debt sustainability to growing poverty and inequality.
“As a result it will damage the economy and lead to greater inequality and social exclusion in Irish society. It will have negative impacts on the working poor, on families, on children, on people with disabilities. It is unjust, unfair and won’t achieve its aims.”
Meanwhile, at their winter general meeting yesterday the Irish Bishops’ Conference criticised Budget 2012 for not applying any further taxation to the State’s highest earners.
In urging the Oireachtas members to reverse reductions in fuel allowance and the rate of child benefit payments, they said these measures “could have a devastating impact on larger families with low incomes”.
“Families are the cornerstone of strong communities, and children represent the future of our society, yet where is the incentive to people to make their contribution to society through family life?” asked Bishop Christopher Jones, chair of the Bishops’ Council for Marriage and the Family.