We're desperately trying to avoid income tax hikes, claims Kenny
Published 08/09/2011 | 05:00
TAOISEACH Enda Kenny yesterday indicated the Government is still desperately trying to find a way not to hike income tax in the Budget.
The EU-IMF bailout deal dictates that the coalition has to implement €250m worth of income tax increases -- by widening bands and reducing credits.
But Mr Kenny said the Government is planning to negotiate its way out of this part of the deal to fulfil its promise not to increase income taxes.
The Taoiseach specifically said yesterday there would not be any widening of the tax bands, which would mean workers paying more income tax. He said the Government was seeking "alternatives".
Finance Minister Michael Noonan had warned there were few easily-found cuts left and Budget 2012 would come down to "rather difficult" policy decisions.
Mr Kenny also revealed the Government is planning to let the public know the menu of potential cuts to be implemented in the Budget.
The move would allow the public to see the options outlined by each department and the potential cuts would be debated by TDs.