Sinn Fein proposes tax system review

A major review of the tax system was today proposed by Sinn Fein.

Setting out its pre-budget submissions the party said the Government should work to deliver a budget “for an Ireland of equals“.

It said the December budget must take into account recent cutbacks announced in the country’s Book of Estimates.

Launching the submissions, Caoimhghin O Caolain, Sinn Fein’s leader in the Dail, said immediate measures must be undertaken to overhaul the tax system.

Proposals included establishing a new tax band for the highest earners – a 50% rate for those earning more than €100,000 a year, and removing lower earners from the tax net.

It also proposed returning capital gains tax to 40% and retaining corporation tax at 16% with a special 30% rate for banks and financial institutions.

“A key aim of our proposals is the elimination of the many loopholes and inequitable tax breaks which allow the very wealthy to avoid paying their fair share,” Mr O Caolain said.

“At the same time the tax system should have targeted incentives for research and development in Irish industry.”

The announcement of the Government’s budget on December 4 follows last week’s publication of the Book of Estimates, which detailed public spending cuts for next year.

This included cuts across the board in all Government departments, with the most controversial being the abolition of the first-time home buyer’s grant.

Sinn Fein said the cuts had caused widespread and justifiable anger throughout the state, and that six months after the General Election people felt betrayed by the Government.

It said the forthcoming Budget needed to be seen in the context of “u-turns” made in the Book of Estimates.

Other priorities Sinn Fein said should be made in the December budget included resources for improvements in health, housing, social welfare, education and childcare.

The party said these should be reformed to ensure equality of access, efficient delivery and value for money.