Union leaders cool on Budget

UNION leaders expressed their disappointment that the Government did not cut the lower rate of tax for workers.

Though those on the minimum wage will continue to be kept out of the tax net, IMPACT general-secretary said the main winners from Budget 2007 were those on higher salaries.

“Top earners are three-times winners as they benefit from increased tax credits, wider tax bands and a cut in the top tax rate.

But those on low and middle incomes will probably stand still.

“The minister should have left the tax rates alone and invested in the things that help all workers — not just the highest paid.”

Amicus national secretary Jerry Shanahan said was unhappy that the standard rate tax band has only been increased by €2,000 for middle income earners.

“It should have increased by €5,000 as this is where the tax burden is heaviest.”

Mr Shanahan was pleased with the automatic crediting of tax relief on union subscriptions.

SIPTU’s president Jack O’Connor said the budget was “unnecessarily cautious” given it had been hyped as greatest giveaway Budget ever.

“Despite the urgent requirement for expenditure in health care, child care and elder care, the minister is still budgeting for a substantial surplus on the current account which viewed in the light of the experience of recent years, will actually turn out to be greater than projected.

“The increase of €2,000 on the standard rate band will still see those hovering just above average industrial earnings dragged into the top rate of tax.

“Greater strides to address deficits in social infrastructure and promote fairness and equality in our society should have been taken.”