Labour off target

LABOUR leader Eamon Gilmore claims the budget deficit of €18bn can be solved with a new 48% tax rate on all income over €100,000.

I see two problems with this proposal. First, the tax rate is already 52% on income over €36,000 when you include PRSI, the income and health levies.

Second, the Labour party’s own figures show this proposal will yield less than €0.5bn leaving them €17.5bn short. It seems the hole in the Labour party’s budget plans is almost as big as the hole in Anglo Irish Bank.