Wholesome tax plans are not always palatable to voters, writes Marc Coleman, Economics Editor.
It's an edict most of us have heard at the dinner table when we were children: "Eat those greens first or you'll get no chips, never mind dessert". The wholesome and virtuous must come before the enjoyable.
The Green Party is into being wholesome (lentil soup, carrot juice, that sort of thing) and its tax policies are true to form. The only trouble is, what if it's all greens and no chips afterwards.
Like those Italians who tried setting up Italian restaurants in Ireland during the 1950s - only to find we just wanted their fish and chips - Labour and Progressive Democrats policies are focused on what they think the voters understand and want the most: cuts in tax rates and a lot less talk of complicated commitments on thresholds and bands.
But Trevor Sargent is not for fads. The V-necked sweater says it all: his is a party that wears sandals and eats nut cutlets, never mind what the so-called trendsetters say. In its election tax policy document, that wholesomeness begins on a point of broad agreement with the Labour Party, which advocates creating a commission on taxation. The Greens lash out at "unjustified tax breaks" and promise to ensure that the costs and benefits of any future tax reliefs benefit society rather than high earners.
That is where its similarity with Labour tax policy comes to an end (the similarities with the tax policies of the Progressive Democrats are not worth mentioning).
Unlike the Labour of today, the Green Party's commitment to indexing tax bands and credits is explicitly stated and justified. As if complaining about fatty acids or monosodium glutamate in processed food, the Greens want "taxation by stealth" eliminated from our digestive system.
As for Labour, having softened its brand in this market (from a commitment to indexing the standard-rate band over the lifetime of government, Labour now refuses to say what it will do a mere 11 months before the next budget), the party has created enough space to reverse its position if government finances are unfavourable.
Like his promise to stand down as Green Party leader if his party enters government with Fianna Fáil, Trevor Sargent's stance on indexing tax bands is a clear pitch to a certain type of Labour voter.
It is, he says, "a fundamental part of social justice from our point of view". And his party's finance spokesman Dan Boyle has promised that the Greens will seek not just indexation over the lifetime of the next government, but will aim for automatic indexation.
And where Labour leader Pat Rabbitte has not committed to increasing the rate of capital gains tax, the Greens are happy to do so in unambiguous language. Describing the present 20 per cent rate as "inequitable", the Greens say that capital gains taxation should be moved towards parity with taxes on income and propose increasing the rate to 25 per cent. This is one proposal which may create difficulties if the Greens enter government with Fine Gael.
The corollary of this approach is clear - the Greens will have no truck with the Progressive Democrats' approach to income tax policy, although on stamp duty there is some similarity.
Describing as "inequitable" PD proposals to cut higher income tax rates, the Greens say they want income tax rates left where they are. Like the PDs, the Greens will aim to reform stamp duty, albeit with a different emphasis. Stamp duty relief will be extended for first-time buyers and for those in large houses trading down.
In a pitch to business, the Greens add that they will not raise the rate of corporation tax and also promise to abolish commercial rates. And if the Greens get into power, they will seek to reduce VAT rates on some goods and services from 21 per cent.
Compared with the two tax policy proposals so far outlined, the Green proposals are much more far-reaching in scope. Where they are - as yet - far less clear is in terms of their cost. Preliminary calculations put the cost of Green Party tax policies at about €1.5 billion over five years. They also show what a clear priority tax indexation has - almost half of this total tax package - some €700 million - will go towards this policy.
Dan Boyle qualifies the policy by saying that this approach is "open to negotation" but adds that it must represent a "clear sense of direction" for any government in which the Greens play a part.
Some €615 million would be spent to increase tax credits for those on low wages, and a further €175 million would go towards cutting both employer and employee rates of PRSI. About €150 million would go towards stamp duty reform. Its proposals on VAT "have not been worked out yet", says Boyle, but he promises that the Greens will soon publish a comprehensive costing of all their proposals on tax and spending once these are finalised. And depending on how quick they are at phasing things out, Green proposals to phase out Motor Tax and Vehicle Registration Tax (VRT) would also cost a pretty penny.
But in a clear difference with other parties, the Greens are prepared to buck the "no new taxes" mantra of recent years. A €20 per tonne tax on carbon emissions would be introduced if they are elected, to be replaced in two years with carbon quotas for individuals.
This would wipe €510 million off the net cost of tax cuts in other areas. But for industry - particularly small manufacturers - this would be a sharp bone of contention and a likely sticking point for negotiations with either Fine Gael or Fianna Fáil. The Greens also calculate that tax breaks for those on high incomes are costing the exchequer €1.6 billion, representing another pot to be raided.
One thing is sure about Green Party proposals, even if they are implemented. Any positive environmental impact they have will be offset by the midnight oil burned to get them agreed.