Madam, – In arguing “Tax on child benefit fairest for low-income families” (Opinion, October 27th), Tim Callan and Brian Nolan ignore an obvious question: on whose income should child benefit be taxed? They ramble on about families’ incomes, but they should know that our system doesn’t tax families, but individuals. Which individual in each family should be taxed on this income? In my family, the child benefit for our three children is paid to me.
Although it goes into a savings account in my name, I regard it as my children’s money. It is earmarked for their educational expenses. My husband has no control over this money.
So, who should be taxed? Me? I have a very low income; even if child benefit is counted I’d owe very little tax to Mr Lenihan. Most of the mothers I know have no income; taxing them won’t balance the books. Or maybe my children should be taxed? They have no income other than the odd tenner given by their granny on birthdays. Would their contribution rescue the country from bankruptcy? I can’t see how fathers could be taxed, as child benefit isn’t paid to them. So who precisely should pay the tax on child benefit championed by Callan, Nolan and others (including Seán Fitzpatrick, previously of Anglo Irish Bank)?
Once the Irish tax system was based on the family, but Bertie Ahern and Charlie McCreevy axed that. This is the system they devised. It is deeply resented by many families, because it means that families with one earner pay more tax than families with two earners. Still, we have to live with it, whether we like it or not. Now the same goes for the Government that dreamed up the system. – Yours, etc,