Holly Cairns criticises proposed tax cuts in upcoming budget

The Social Democrats leader said: 'People are sick and tired of hearing about a tax cut, a tax break. What we need is proper public services, and that benefits everybody.'

Thu, 14 Sep, 2023 - 18:23

Tadgh McNally, Political Reporter

The leader of the Social Democrats, Holly Cairns, has criticised the Government for moving to cut taxes in the upcoming budget, saying that funds should instead go to improving public services.

The Cork South West TD said if the Social Democrats were in Government, they would not move to cut Universal Social Charge (USC).

“A cut in USC will put a few euro of people’s own money back in their pockets and it won’t make the significant difference that people are looking for. We wouldn’t be cutting the USC at this time,” Ms Cairns said.

“I think it’s more important to be honest with people than promise tax cuts. Fine Gael is the boy who cried wolf on this, continuously promising to abolish the USC and all of these things that have yet to happen.”

Currently, the Government is signaling there will be a move to cut the USC in the upcoming budget. Finance Minister Michael McGrath confirmed that cuts to the tax are under consideration, adding that the primary focus is on people on low and middle incomes.

Ms Cairns said it is “understandable” why people have an aversion to paying tax, saying that public services across the country are “threadbare”.

“Our approach is unashamedly to build those public services and we think that, if you’re paying taxes then and you see things like genuinely free education, free childcare, all of those things would be the thing that would have an impact.

Holly Cairns said if the Social Democrats were in Government, they would not move to cut Universal Social Charge (USC). Photo: Sam Boal/Rollingnews.ie

“We wouldn’t go around promising cuts like that to try and buy people’s votes. I think the electorate see through it.”

Asked if there were any circumstances where the party would move to cut the USC, Ms Cairns said that it was one of Ireland’s more progressive taxes due to its increases being dependent on how much a person earns.

“It wouldn’t be a focus for the party,” Ms Cairns said. “If we want to genuinely make Ireland more equal and a nicer place for everyone to live, you have to build those public services.

People are sick and tired of hearing about a tax cut, a tax break. What we need is proper public services, and that benefits everybody.

Ms Cairns also described the Government as being oblivious, saying that people on TD and ministerial wages were unable to understand “the reality of what people are facing”.

“I think if you're on a minister’s wage or TD's wage or Taoiseach’s wage, there is no housing crisis, there are no waiting lists, you could pay for everything,” Ms Cairns said, adding that time is up on the current Government.

The former co-leaders of the party, Catherine Murphy and Róisín Shortall, also confirmed their intention to stand again at the next general election.

Holly Cairns (second from right) told the Social Democrats think-in at the Communications Workers Union in Dublin: “I think if you're on a minister’s wage or TD's wage or Taoiseach’s wage, there is no housing crisis, there are no waiting lists, you could pay for everything.” Photo: Sam Boal/Rollingnews.ie

“That’s my plan,” Ms Murphy said, adding that the Social Democrats would be looking at a two-candidate strategy in her constituency of Kildare North, which was allocated an additional seat by the Electoral Commission last month.

On the upcoming local and European elections, Ms Cairns said she does not know how many people her party would be able to get elected.

“Our aim is to get into as many local electoral areas and constituencies as possible and offer people that alternative that I think and hope that a lot more people than you might predict would like,” Ms Cairns said.