Tax untouchables ‘continue to enjoy sweet deals’

CHARLIE MCCREEVY again failed to drop his tax axe on “untouchables” who have earned billions tax-free over the past three decades through State-backed ‘sweet’ deals, Labour said yesterday.

Stud farmers, property developers, tax exiles and creative artists were again left out of the tax loop, while PAYE workers were hit with an extra 1.1billion tax bill, Labour's Finance spokeswoman Joan Burton said.

"There was not a mention of a horse in this Budget Mr McCreevy is just continuing to distribute wealth upwards so that the rich can sleep easily," she added.

Stud farmers earn an average 100 million tax-free on stallion fees an incentive they have enjoyed for the past 34 years without once being hit for tax on it. Property developers who slashed 1.7 billion off their tax bills in one year alone still remain untouched for hoarding valuable building land after this Budget. Tax exiles who legally avoid paying millions to the Exchequer also escaped the tax axe.

"The Cinderella tax exiles can still come here for more than 183 days a year, provided their head is not on the pillow at midnight at the end of their day trips," Ms Burton said.

A Revenue Commissioners study of the top 400 earners in this country last year revealed that 29 of them paid no tax at all, while 51 paid tax at less than 5%.

After this Budget it looks like more top earners will be escaping the tax net, Ms Bruton added.

A third of all tax income next year will come from PAYE workers, who will have to pay 10.3 billion compared to the corporate sector who will pay 5.3bn and the 1 billion that will be generated from capital gains.