Tuesday 22 August 2017

Labour's growing record of reversals in policy

TAX

What Labour said before the election: For two years, it had been promising a 48pc tax on those earning over €100,000.

What it's saying now: Labour dropped the 48pc tax, after accusations from Fine Gael that it was a "high tax" party. It said the higher universal social charge had effectively brought in a tax rate of 52pc on self-employed people earning over €100,000. It is now planning to ensure that the higher universal social charge applies to all with salaries of €100,000 -- not just the self-employed.

REDUCING THE BUDGET DEFICIT

What Labour said before the election: Last October, it was in favour of meeting the EU target of reducing our annual €19bn Budget deficit to 3pc of national income by 2014. To do that meant implementing €15bn of cutbacks and tax increases -- although Labour never signed up to this figure.

What it's saying now: Labour leader Eamon Gilmore wants to extend the deadline for meeting the deadline to 2016 (the EU had already agreed to give us till 2015). And with €6bn of cutbacks and tax increases already implemented in the Budget, he argues that pushing through the remaining €9bn will kill growth and jobs. Labour is in favour of €7bn of cutbacks instead.

WATER CHARGES

What Labour said before the election: It was in favour of water charges as long as water meters were installed.

What it's saying now: Labour is against water charges and believes that money should be spent on upgrading leaky pipes rather than installing meters.

Irish Independent

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