Ireland

ICTU calls for Cowen to end tax shelters

The Government should eliminate tax shelters, especially those relating to property, the Irish Congress of Trade Unions (ICTU…

Tue Oct 26 2004 - 01:00

The Government should eliminate tax shelters, especially those relating to property, the Irish Congress of Trade Unions (ICTU) said in its pre-budget submission today.

"It is extraordinary that the government continues to use taxpayers' money to subsidise property investment. The main beneficiaries are mainly persons of high net wealth," the ICTU said.

According to the organisation, the Minister for Finance, Mr Cowen, should implement the provisions of the Sustaining Progress partnership agreement in his Budget.

"Economic and budgetary conditions are way beyond even the most optimistic outlook when sustaining progress was negotiated, as such there should be no difficulty delivering on the commitments contained in it [the Sustaining Progress Agreement]," it said in its submission.

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ICTU also said the budget has to be focused on the less well-off and address the needs of those left behind in the 15 years of unprecedented growth. "It is time for a bold approach to taxation," the submission states.

Part of this approach includes a call for the "iniquitous subsidy" to the Bloodstuck Industry to be eliminated and for a levy of €5,000 on SUVs over 2.4 litres to be considered.

ICTU also called for all income up to the level of the minimum wage (€7 per hour or  €273 per week) to be exempt from tax.

Among the other items recommended in the submission were:

  • No worker on average industrial earnings (€29,879 in September 2004) should be paying at the top rate and 80 per cent of taxpayers should pay at the standard rate.
  • Tax credits should be adjusted to preserve the value of wages;
  • Tax relief for childcare costs/provision, including a minimum tax credit of at least €20/week and tax relief up to an initial €50/week for parents using approved and receipted childcare;
  • Lowest Social Welfare rates to increase by €21 per week to progress towards target of 30 per cent of gross average industrial earnings (GAIE) by 2007;
  • Pensions to increase by at least €21 to progress towards target of achieving 34 per cent of GAIE by 2007
  • Maternity Benefit to be restored to 80 per cent of reckonable earnings.