Labour’s tax pledge sparks row

THE explosive row over Labour’s pre-election tax cut pledge took a personal twist last night as Tánaiste Michael McDowell branded Pat Rabbitte a “sad hypocrite”.

The Labour leader hit back, insisting he had always backed a better deal for low- and middle-income earners and admitted he took pleasure in the “disarray” his surprise promise to bring in a €1 billion slash in the standard rate had caused in the Government.

The Tánaiste laid into Mr Rabbitte’s Árd Fheis speech, calling his promise to cut the main rate of tax from 20% to 18% a U-turn.