Cowen hints at future FF tax cuts

FINANCE Minister Brian Cowen has hinted that Fianna Fáil will continue to cut taxes if returned to power.

Labour stunned the Fianna Fáil-PD coalition earlier this month when promising at its party conference to cut the basic tax rate by two points to 18% if in government after the summer election.

At their party conference last weekend, the PDs attempted to outdo Labour, promising the same basic rate cut but also pledging to cut the top rate from 41% to 38%.

Fianna Fáil, however, refused to outline its policies, Mr Cowen and the Taoiseach simply insisting they would not engage in “auction politics”.

Last night, however, Mr Cowen indicated that, if economic circumstances allowed, Fianna Fáil would continue to cut taxes.

Addressing a function held by the Irish Taxation Institute, he said: “This Government believes in the incentivising power of low taxation and has the record to prove it.

“If, having made provision for the full and timely implementation of the National Development Plan, and, if having committed 1% of GNP to investment in the National Pension Reserve Fund, I have additional resources at my disposal; I will use them to continue along the tax policy path which this Government has followed since 1997.

“We understand how important low taxes are to our economic success. That is why we reduced the income tax burden.

“That is why, under Fianna Fáil, low taxes will continue to be the centrepiece of our economic policy as Ireland continues to move forward.”