Election promises only giving back what had been taken away

Let’s get one thing straight. There’s talk of “keeping a recovery going”.

There’s talk of what will be in people’s pockets in five years time: more jobs, more pay and more public services. It’s dream stuff.

But the reality is a lot of what is being promised is giving back what had been taken away.

Very little can soften the blow experienced by ordinary citizens up and down the country in recent years while the Fine Gael-Labour coalition were in power.

Pension levies, carbon taxes, water taxes, property taxes, increases in motor taxes, increases in DIRT on savings, and the taxing of maternity benefit were just some of the charges imposed.

Stealth charges saw septic tank charges introduced, fares went up for transport and the cost of medicines for families went up along with prescription charges. For some, there has been no recovery yet.

Fine Gael yesterday launched its blueprint for the economy over the coming years, with tax cuts, promises of more public service workers and more jobs all thrown into its wish list.

At the centre of the long-term economic plan is a bold proposal to abolish the universal social charge for all. Any unfair increases for high earners would also be clawed back in the plan.

Fine Gael also anticipates reducing unemployment to 6% by 2020 and promises to entice 70,000 emigrants home with its package of tax cuts.

Overall, Fine Gael anticipates spending €12bn over the next five years. Roughly 70% of this would go on public services, including a floating “emergency fund” for any economic shocks, while the remaining 30% would be allocated for tax cuts.

Removing the USC from all workers would cost the exchequer some €3.45bn. But the overall results of Fine Gael’s tax package would see reductions in the tax net of a smaller amount, after increased compliance measures through Revenue are enforced and tobacco tax is hiked up, the party says.

It is also expected to announce proposed changes to PRSI when it launches a formal tax plan during the election campaign.

Fine Gael sources say while more lower earners would be drawn into the PRSI net, to offset USC losses for the exchequer, those same workers would get increases in entitlements to certain benefits, including dental care.

It remains to be seen how this proposal will go down with Fine Gael’s old coalition partner Labour.

Elsewhere, Fine Gael also set out its plan for a working family payment, where parents working 15 hours or more per week would take home at least €11.75 an hour.

Planned expenditure of €42bn would also go towards infrastructure projects, shaped by job strategies, to help bring unemployment down to below 7% for every region.

These grand proposals will be scrutinised over the coming days in the campaign. For many voters though, it could be some years before they feel anything drop back into their pockets.

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