Government accused of election tactics and 'sneaky' taxes

The Government has been accused of introducing taxes by the back door and of engaging in election tactics by promising income tax cuts.

Fianna Fáil finance spokesman Michael McGrath yesterday said that despite claims by the coalition that no new taxes were introduced that 13 “sneaky” cuts had been brought in.

His comments came as TDs on all sides of the Dáil chamber this week discuss three years of the Fine Gael-Labour coalition.

“The Government claims it has not increased income tax rates. It has largely but not entirely honoured its promise in respect of income tax bands, credits and rates; however, it has increased the tax take in a sneaky way by implementing 13 separate increases in the taxation of income,” Mr McGrath said.

The Cork South Central TD said the cuts included the universal social charge being put on a cumulative basis, an increase in DIRT to 41%, maternity benefit being taxed and the abolition of the PRSI allowance.

Meanwhile, Health Minister James Reilly yesterday set out his wishlist for the years ahead by saying the Government was on target to abolish the HSE and would officially do so later this year, with legislation in the coming months.

Opposition TDs dismissed the week-long debate as propaganda. Socialist TD Joe Higgins said the Dáil statements by ministers were nothing but an “orgy of spin and media manipulation”.