Overhaul of pension perks ‘would save €2bn’
The group, which grew out of the Catholic religious congregation-aligned organisation CORI, has also called for text messages to be taxed as part of its alternative budget, which it says would create 100,000 part-time jobs for the long-term unemployed.
Other proposals include a student loans scheme to pay for third-level fees and a tax increase on gambling which would go towards social welfare payments.
Director of Social Justice Ireland Fr Sean Healy said its plan would make €3bn savings in a much fairer way than has been done to date.
“The Government has made a complete mess of the banking crisis, to a point where it will cost us billions for years and years,” said Fr Healy.
“Secondly, it has, over the last three budgets, savaged poor people so as to protect the richest.
“Thirdly, it has vandalised the economy. That’s some achievement over three budgets and I don’t think it should continue.”
Fr Healy said pension tax breaks – with a 20% rate on lower incomes and a 41% rate for higher earners – unfairly hit the less well-off. This means four-fifths of the benefit goes to the richest one-fifth, he said.
Introducing a standard rate would make a €1.4bn saving for the state finances, under the proposals.
A 2.5% levy on all corporate profits – over and above the existing 12.5% corporate tax rate – would raise another €632 million.
Fr Healy insisted there was no evidence to suggest companies would leave Ireland if forced to pay a levy on their profits.
Social Justice Ireland also advocated:nA 0.33 cent tax on text messages, raising €25m.
* An overhaul of tax breaks – as recommended by the Commission for Taxation – to save €552m.
* Long-term jobless given part-time jobs in public and voluntary sector, earning the equivalent of social welfare payments.
* An increase in social welfare payments of €5 a week for single people, and €8.50 for couples.
* Student loans to cover third-level fees and living costs, saving €445m.
Hitting out at the “macho” mindset intent on slashing public spending, Fr Healy said he agreed with the need to drastically cut Government borrowing.
But he insisted it could be done over a longer timeframe and did not need to be completed by 2014 – the Government’s target.
