Wow,
I am just as shocked and happy as anyone else, except Brian Cowen et al, at our party's pledge to reduce the standard rate of tax by two percent to 18%.
That is great and will make a difference to low income earners like me. It will mean a lot of money back out of my wages.
The average industrial wage at present is about €32,000. It is likely to rise to just under €34000 by the end of 2007. The FF/PD tax plan which would only cut the higher rate of tax gives nothing to workers on or below the average industrial wage.
We are proposing to help everyone by lowering the lower rate. As a nation we can easily afford this cut as the Government this year ran a surplus of €2265m – so they were €5,190 million better off than expected in the Budget for that year. It is a normal part of the Budget process to include a tax package, to a greater or lesser extent – the income tax package in Budget 2006 cost just over €1250 million. This makes the 2% cut readily affordable.
Pat Rabbitte promised a fairer society and I think his proposed tax cut is the right way of going about it.
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