Unite calls for budget tax cuts

Targeted tax reductions for low-and middle-income workers, an increase in employer’s PRSI to pay for a new unemployment benefit, an increase in taxes through a raft of new measures and a major ramp-up in public investment are included in trade union Unite’s pre-budget submission.

“Even with constrained budgetary conditions, the Government can still launch an expansionary programme of investment, increased wages and new public services and income support programmes.

“The debate over marginal changes in tax rates and tax bands diverts us from the real issue: That workers are not only subsidising an extremely low-level of contributions from employers and the corporate sector; they are now being asked to subsidise tax cuts which will undermine the Government’s ability to boost living standards.

“The key issues remain growth, employment and incomes,” said Unite research officer Michael Taft.

Some of the proposals contained in the pre-budget submission include:

*Targeted tax reductions for low-and average-income earners, including non-implementation of the proposed water charges, the introduction of refundable tax credits and measures to ameliorate the impact of PRSI on the low-paid;

*A phased increase in employers’ PRSI to fund a new pay-related unemployment benefit;

*A substantial increase in public investment to drive employment, growth and increased productivity, including an emergency social-housing building programme;

*Rolling out affordable childcare, with fees reduced by nearly two-thirds over current market rates and the abolition of Direct Provision restrictions on asylum seekers;

*Income boost for all low-income earners, with an increase in the national minimum wage and a targeted increase in pay for low-paid, public-sector workers;

*An increase of €800m in tax revenue from capital, inheritances, financial property, and high-income groups.

The Government will unveil the budget on October 14.