Ahern and McDowell hit out at Labour's tax promise

Taoiseach Bertie Ahern and Tánaiste Michael McDowell tonight launched a fierce two-pronged attack on the Labour Party’s promise to cut the standard rate of tax by 2%.

While the Tánaiste and Minister for Justice said Pat Rabbitte was talking rubbish, the Taoiseach suggested it was vote buying.

Dismissing Labour’s plan out of hand, Mr Ahern accused the party of inconsistency.

“I suppose it’s a change when a party consistently says things, criticises a government for something and ridicules and says that it’s something they would never implement and coming closer to an election they turn around,” Mr Ahern said.

“That is surprising, but I suppose inconsistency is not something that ever surprises me.”

At the Labour Party conference in Dublin on Saturday, Mr Rabbitte vowed to cut the standard tax rate from 20% to 18% if voted into government.

For years the party favoured altering tax bands rather than reducing the base rate of tax.

Minister for Finance Brian Cowen was the first to dismiss the pledge yesterday, branding it an incredible Road to Damascus conversion.

His views were reiterated by his Cabinet colleague Mr McDowell today in a withering attack on Mr Rabbitte.

“That speech proves that he is now admitting that he has been talking rubbish for the last 20 years,” Mr McDowell said.

“He’s attacked every aspect of our tax policy. He’s voted against them in every finance bill.

“He has denied our argument that tax rates matter and here he is now saying after 20 years of empty, unsuccessful, hypocritical rhetoric that he accepts that he’s wrong. What a sad moment for him.”

Mr Ahern went on to say that the Government would continue to cut tax as and when resources allowed.

“I think every single tax cut in the last 15 years or so, bar 1%, has been by Fianna Fáil and the Progressive Democrats,” he said.

The Taoiseach said 80% of the working population now pays tax at the standard rate.

He added: “As resources permit we should continue to try to tweak the system.”