THE TAX system needs to be broadened with charges on capital rather than income, Taoiseach Brian Cowen has said.
“This country is spending €400 million per week more than it’s taking in and that’s not a sustainable situation.”
Mr Cowen said the tax on second homes was very successful and similar taxes should be considered.
In a wide-ranging interview on Today FM's Sunday with Sam SmythShow, Mr Cowen referred to the Programme for Government in which "we said we're prepared to look at taxes on capital rather than taxes on income as a way of boosting employment prospects".
Asked if he would consider a property tax, the Taoiseach said: “We do need to broaden the base of the tax system. There are 50 per cent of those who work who don’t pay income tax.”
Referring to the tax on second or holiday homes, Mr Cowen said: “That money went towards helping to provide extra income for local authorities. It was a simple tax, it was understood, it was complied with and the monies came in.”
He added that they had to look at other areas, primarily at cutting out “non-essential expenditure” that could have been afforded previously.
Asked about saying he “regrets” rather than he was “sorry” about the economy, the Taoiseach said: “I’ve been saying it for the last 15 months the fact that I regret anything that has happened . . . If anyone wants to put some of the blame for that on me, of course I take that responsibility”
People said there was no rational basis for the decisions he took “and there was”.
Asked about his predecessor, Mr Cowen said Bertie Ahern was a “consummate politician” who had his own style. The Taoiseach said he had a “more collegiate” style.
“I’m a team player. I believe in team. There’s no ‘I’ in team as far as I’m concerned.”
Asked about family and holiday plans, he said: “You try to keep some sense of normality and continuity of life.” He referred to reports of a family holiday last year in a mobile home as “shock horror, he’s sharing holidays with others in an area that’s he’s been sharing for 10 or 15 years”.
He continued: “I’m a man of simple pleasures. I like having a round of golf, walking the beaches and meeting a few friends for a relaxing few hours.”
The Taoiseach also sharply criticised the Opposition, who portrayed the country as “being incapable of solving its own problems”.
“I don’t think [it] serves anybody at all.”
