McGrath’s tax-cutting pledges provoke fury within Fine Gael
FINANCE Minister Michael McGrath’s recent pledges on substantial income tax packages in the next budget have provoked fury in Fine Gael.
But despite the ire of his Coalition partners, Mr McGrath – speaking exclusively to the Irish Daily Mail – reiterated that this autumn’s pre-election budget will concentrate on personal taxation.
He confirmed there would be a ‘substantial income tax package in this autumn’s budget’.
The minister was commenting before the most recent opinion poll showing a sustained fall in support for Sinn Féin and a modest 3% rise for the Coalition. According to the latest Ireland Thinks opinion poll for the Sunday Independent, Sinn Féin’s approval has fallen by another two points to 27%.
Sinn Féin has now declined by eight points since its peak last September and is at its lowest in Ireland Thinks polls since April 2021, nearly three years ago.
And despite an ongoing housing, health and immigration crisis, Fianna Fáil and Fine Gael are both up one point to 19% and 20% respectively, while the Greens are up one point to 4% and can now aspire towards retaining up to 10 of their current Dáil seats.
The rise in support for the Coalition has come against a backdrop of a €1.3billion tax-cutting budget and the largest Social Protection giveaway in the history of the State, by Minister Heather Humphreys.
One Coalition source noted: ‘It is hardly coincidental that just as the first tax reductions kick in, support rises for us by 3% and falls by 2% for Sinn Féin. That’s a substantial 5% swing in our favour. People are seeing more money in their wallets. There’s a lesson there for us.’
In the wake of the poll, the Coalition now has a substantial 16% lead over Sinn Féin.
One Government source noted: ‘People like Holly Cairns and the Social Democrats on 7%, and even Labour at 4%, might be starting to rethink their election game plan if they don’t want to be left detached with the Sinn Féin losers.’
But as Mr McGrath begins to build up a massive war-chest for an early September pre-election budget, a battle has started between Fianna Fáil and Fine Gael over which party will offer the voters the biggest tax cuts.
The Finance Minister first threw the pre-budgetary dice at the recent Irish Tax Institute’s annual dinner where he said: ‘I recognise the importance of having a competitive income tax system and I’m committed to introducing a further substantial income tax package in the autumn budget.’
He repeated his pledge on Today with Claire Byrne on RTÉ Radio 1, saying his plan was possible because more than 2.7 million people are in employment – the highest number ever.
The interview provoked fury in Fine Gael with one source saying: ‘The hierarchy went mad. McGrath is robbing our clothes. Tax cuts are our core value.’
Another warned: ‘If McGrath wants a tax war with us we will give it to him. We are not going to suffer the indignity of being outbid by Fianna Fáil.’
‘McGrath’s robbing our clothes ’