Varadkar accused of floating 'nonsense' over introduction of new income tax band

Tanaiste Leo Varadkar has tested positive for Covid-19. File Picture: Damien Storan/PA Wire

Tánaiste Leo Varadkar has been accused of "dog whistling" and of floating "nonsense" in suggesting that a new income tax band be introduced for middle income earners.

Leo Varadkar, who is isolating today as he tested positive for Covid-19, has put forward the possibility of a new 30% income tax rate, which would benefit the squeezed middle and has asked Finance Minister Paschal Donohoe to examine the idea.

However, Social Democrats co-leader Róisín Shortall has said that adding a middle 30% rate of income tax would be regressive.

Describing it as "nonsense stuff", Ms Shortall said: "A very large number of people would get no benefit whatsoever from this. In fact, anybody earning less than about €37,000 a year would get absolutely no benefit at all."

She suggested that Mr Varadkar has previous floated other policy ideas, including the abolishment of USC, which have failed to materialise.

"This latest thing is really off the top of the head, it's nonsense and you know, it's clear that none of the other members of Fine Gael knew anything about this before the other day, and it seems he is putting everybody kind of in an awkward position now in Fine Gael because it's more of the Tánaiste musing aloud without anything coming behind.

"We do have a reasonably progressive income tax system. But this kind of measure would ensure that it would be less progressive or would be become more regressive."

However, Minister Josepha Madigan defended the Fine Gael leader, stating he is "perfectly entitled" to come up with ideas ahead of any budget.

"In Fine Gael we have a very broad tent, we're all entitled to give our views, all entitled to give her opinions," she told RTÉ's Today with Clare Byrne show.

Meawhile, Mr Varadkar has cancelled a series of engagements in Cork today and is isolating with Covid-19 symptoms.

Mr Varadkar has tested positive for the virus on antigen test. He had tested negative yesterday while attending an EPP meeting in Brussels.

A spokesperson for the Tánaiste says he has "mild intermittent symptoms but is otherwise well and intends to carry out any functions that he can virtually".

Mr Varadkar had been due to attend events in Ringaskiddy and Ovens today.

Earlier this week, it was confirmed that the Justice Minister Helen McEntee had tested positive for Covid-19 and the Health Minister Stephen Donnelly was isolating having shown flu-like symptoms, but had tested negative.

Taoiseach Micheál Martin attended events in Brussels having recovered from Covid-19 in recent days.