Sunday 4 December 2016

The 'budgetary situation' will lead to rises, not the anticipated tax cuts

Published 20/02/2014 | 02:30

TAX cuts are a priority in the next Budget, the Taoiseach says – provided, of course, that the budgetary situation allows it. A more pertinent question is whether the budgetary situation will be allowed to stop it.

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It is a bit depressing to have this debate running in February, when the Budget is not due until October. Apparently there are some elections between now and then. It is also depressing that the debate is already running along well-worn tracks – excessively well-worn tracks.

The employers, via IBEC, along with the employment minister, want an increase in the lower-rate tax band so that employees do not enter the top rate at less than the average industrial wage – itself significantly below the average national wage.

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