Real reason for fall in social spending
He bemoans the fact that social spending has fallen from 21% of GDP in 1992 to 14% in 2001 and seems to attribute the drop to reductions in corporation tax. That is ridiculous.
Social spending includes unemployment benefits. Joblessness plummeted over those nine years from 17% to 4%. Naturally, that would reduce the overall spending on unemployment benefits and, consequently, social spending.
Since 1997, the rate of corporation tax has more than halved while receipts more than doubled.
Fianna Fáil in government has halved unemployment while doubling welfare expenditure. We have taken hundreds of thousands of lower paid workers out of the tax net. We introduced the minimum wage and this year’s Budget has ensured that these earners will be exempt from tax. SF’s policies would drive these jobs away, leaving thousands unemployed, stalling house prices and plunging the economy into a recession.
Pat Carey TD
Dáil Éireann
Kildare Street
Dublin 2
