Fianna Fail finance spokesman Michael McGrath has welcomed the universal social charge (USC) relief but accused the Government of introducing taxes and charges without an ability-to-pay clause.
He said the USC was the centrepiece of Minister for Finance Michael Noonan’s budget, adding it was a very heavy burden on Irish taxpayers introduced at the worst of times.
“We agree the burden of the USC should be lessened,’’ he added.
But the impact of the budget’s tax measures had to be put alongside the series of taxes and charges - from the local property tax to water charges, increased public transport fares to the five-fold increase for prescription charges, he said.
Mr McGrath said the cost in a full year of Mr Noonan’s package was some €550 million,
“And because the USC is taxed on the income of an individual, the biggest winners will be two-income couples, especially high-earners,’’ he added.
“Yet again, where one parent stays at home to mind children, the gain will be far less.’’
He said a two-income couple earning €70,000 or more would stand to gain by €1,800 more, while a single-income couple on €35,000 would gain by €377 on the USC and €190 on the home care tax credit.
Mr McGrath said pensioners would not be fooled by the budget because they would remember well what the Government had done to them over the past number of years.
The fuel allowance, gas and electricity units had been cut; the telephone allowance abolished; and property tax and water charges imposed, he added.
Thousands and thousands of hours of home help had also been cut, and the €3 increase would ring very hollow for many people, Mr McGrath said.
Mr McGrath said there was a general air of self-congratulation about the Government's pronouncements and the state of the economy. But Ireland remained vulnerable to a change in international factors, he added.
Fianna Fáil public expenditure spokesman Sean Fleming said the Government had done a U-turn by implementing everything it had opposed in Opposition.
He said the first duty of a government in a civilised society was to provide housing for the people but the Government had failed to do that.
Mr Fleming said issues such as housing, people feeling safe in their homes, an adequate health service and childcare provision were completely within the Government’s control.
Lack of action could not be blamed on external forces or Fianna Fáil, he added.
