Oireachtas

`Piddling' tax reforms ridiculed by Deasy

A GOVERNMENT backbencher criticised the Budget for failing to reform income tax

Fri Feb 23 1996 - 00:00

A GOVERNMENT backbencher criticised the Budget for failing to reform income tax. During resumed debate on the Budget, Mr Austin Deasy (FG, Waterford), said its many "piddling little schemes" fiddled around with the system but would achieve nothing.

It would have been better if the Minister for Finance gave a 2 per cent reduction in tax rates, bringing the 27 per cent rate to 25 per cent and the 48 per cent rate to 46 per cent. That would have given a clear signal to workers that he was serious about reform. He, should also have stated his objective was to get rates down to 20 per cent and 40 per cent for the standard and higher rates respectively.

A lot of people on the dole were not interested in taking up work because tax was too high. It was better to stay on the dole and keep their perks and do the odd nixer.

Calling for a more radical approach to law and order, Mr Deasy suggested that the Army be involved. There were 11,000 in the Army who could be mobilised to assist the Garda. Standards of behaviour in the community had deteriorated dramatically. As a member of the Council of Europe he visited many parts of Europe. "I have never seen the misbehaviour that you see in this country and Garda numbers are not sufficient to keep the situation under control."

READ MORE

Mr Brian Fitzgerald (Lab, Meath), said the Budget showed the Government's "aggressive and positive" attitude towards tackling unemployment.

"Unemployment, in particular long term unemployment, destroys homes and family life. Today we are witnessing whole communities filled with generations of families who have no experience of what it is like to work. In sociological terms, this is a dangerous trend that must be arrested."

Mr Sean Ryan (Lab, Dublin North), said that taxation relief, formed an important part of the Budget. If the provisions aimed tackling long term unemployment were successful, however, he believed that in future years the amount available for tax relief would be all the greater. It was time to stop knocking the social services and acknowledge the valuable role they played in our society.