Lenihan eases tax-hike fears
Finance Minister Brian Lenihan received his copy of the Commission on Taxation report yesterday and expects to publish it in the next fortnight.
But the minister hasn't any plans to go on a tax-raising spree. Mr Lenihan indicated this week there wasn't the scope for tax increases and that changes were about shifting the tax burden so as to encourage jobs.
The minister was also adamant the Government would focus more on spending cuts than tax increases in the Budget.
As revealed by the Irish Independent last week, the commission recommends:
- A new self-assessed property tax. lWater-charge meters in every house. l A tax on child benefit with a tax credit for lower-income families. l An SSIA-style pension for the low paid and a cut in tax relief for high earners.
Meanwhile, Fine Gael last night admitted deputy leader Richard Bruton "misspoke" when he referred to defaulting on bank debts. Mr Bruton said the EU had instructed Anglo Irish Bank to stop paying interest to senior-debt holders. However, the Fine Gael deputy leader said he meant to say "subordinated debt" -- high-risk debt -- rather than "senior debt".
- Fionnan Sheahan Political Editor
