1% income tax cut may not happen

TÁNAISTE Brian Cowen yesterday dropped a broad hint that the 1% income tax cut promised in the Fianna Fáil manifesto and Programme for Government is not going to happen in December’s Budget.

At the launch of the Pre-Budget Outlook yesterday, the minister pointed out several times that the promised tax cut was contingent on Ireland maintaining its current economic strength.

While saying that any tax adjustments would be a matter for him on Budget Day, the tenor of his presentation yesterday was that the economic situation was “tight”, that growth rates for next year had been trimmed down to 3.25%, and the era of double digit growth each year in departmental expenditure had come to an end for the moment.