Finance Bill - Decision time at hand on bank bailout

THERE was some anticipation that Finance Minister Brian Lenihan might use the introduction of the Finance Bill yesterday afternoon to bring forward measures appropriate to the times we live in.

However, Mr Lenihan did nothing more radical or inspiring than announce a higher level of income levy (3%) on all earnings over €250,000. This was anticipated, though a €300,000 threshold had been expected. The extension is to counter-balance the removal of those earnings less than €50,000 from the scheme as had been proposed in the regrettably inept budget.

Undoubtedly, there will be some opposition to the move, but it should be dismissed out of hand, as there are few European economies with a lower tax to GDP ratio than Ireland.