Sir, – Many of the recent assessments of possible changes to income tax levels have benchmarked current contributions against those that existed immediately before the economic crash. Indeed, your own "Budget Families" features looked at the changes between 2008 and today (October 4th).
It is worth noting how abnormal the income taxation system had become by 2008. Fuelled by short-term boom-time tax revenues, the two budgets prior to the economic crash (2007 and 2008) delivered very large reductions in income taxes for all earners. For example, a dual income couple on €50,000 received income tax cuts totalling €2,016 (4 per cent of their income) over those two budgets.
While such reductions were popular, they were never sustainable and were immediately reversed in the two budgets for 2009.
An assessment of the overall percentage of income taxation paid by earners in 2016 shows that for most people the level is similar to that paid in 2005. The Department of Finance publishes these figures each year to accompany the budget.
As our economic recovery takes hold we should, as a society, reflect on where we want to recover to. Restoring income taxes, pay rates (public and private), allowances, house prices and other things to where they were in 2008 makes questionable sense. We should not forget how rapidly and deeply this country plunged into recession and the damage that that transition inflicted on this society.
We are long overdue a more sophisticated vision for the type of Ireland we need to become. – Yours, etc,
Dr MICHEÁL COLLINS,
Assistant Professor
of Social Policy,
University College Dublin.
Sir, – Budget 2017 is on Tuesday and all indications suggest the Minister for Finance Michael Noonan will have €1 billion extra to distribute. It is expected that a third of this will be put towards tax cuts, while the remaining two-thirds will be invested in public services.
Barnardos is calling for investment in services and one of the key areas most in need of investment is childcare services. Recent reports published by Early Childhood Ireland and South Dublin County and Cork City Councils reveal our current childcare system is not working for providers or families.
The Government has been clear in its mantra that work is the best tool against poverty, yet Barnardos has found the lack of affordable childcare is six times more likely to prevent poorer parents seeking work than those who are better off.
Since 2015 the European Commission urged Ireland to take action on childcare as a means to reduce Ireland’s child poverty rate (which currently stands at one in nine) and prevent more children from living in poverty.
In recent days, the Minister for Children and Youth Affairs Katherine Zappone has been publicly championing investment in childcare services to reduce costs and raise standards and has, according to reports, reached an agreement with the Minister for Public Expenditure and Reform. We hope this agreement reflects her welcome and clearly stated ambition to ensure that all families in the State are supported in some way in relation to childcare and after-school care, and unapologetic prioritisation of the lowest-income families.
The immense benefits of quality early years care and education are well-known, giving children the best start in life and giving more parents access to employment. Yet Ireland spends just a quarter of the OECD average on early years.
There is no question but that Budget 2017 must dedicate resources to deliver a high-quality, affordable and sustainable system of childcare if it is serious about breaking the cycle of disadvantage and creating a fairer Ireland for all. – Yours, etc,
JUNE TINSLEY,
Head of Advocacy,
Barnardos,
Christchurch Square,
Dublin 8.