Leo vows to cut taxes in budget
Leo wants budget to increase our take-home pay
LEO Varadkar has pledged to reward workers who ‘get up early’ with tax cuts in the next budget.
The Taoiseach made the vow yesterday following an Irish Daily Mail poll which showed a majority want to see tax being cut – rather than public spending increased.
Mr Varadkar said he was determined to increase the take-home pay of people ‘who work really hard’.
His comments came after a poll revealed one million citizens struggle financially.
TAOISEACH Leo Varadkar says he wants to cut taxes in the next budget.
He made the comment yesterday following an Irish Daily Mail poll which showed most people want to see income tax being cut, rather than spending increased.
Speaking at the Government’s National Economic Dialogue in Dublin Castle yesterday, Mr Varadkar said he is determined to find resources for income tax cuts.
He said: ‘I am determined that we find some space to increase the take-home pay of two million people who work really hard in this country, who get up every day, go to work, and pay the taxes that make everything else possible.
‘It is always the case in almost every budget that there are revenue-raising measures.
‘For example, in the last budget there were increases in cigarettes, but, again, no specific decisions on any revenue-raising measures have been taken – but I am certainly not ruling them out.
‘We are not going to make any decisions on the budget until September or early October, but whatever fiscal space we have available, I think it is important a portion of that, even if it is only a small portion, goes back into the pockets of two million people who work in this country.’
It comes after Finance Minister Paschal Donohoe signalled this week that tax cuts for workers would be a priority for him.
This followed a poll for the Irish Daily Mail, published on Tuesday, which showed the majority of people favour tax cuts above increased spending.
And Mr Donohoe said he did not believe it was sustainable for someone on a low-to-mid income to earn €10 in overtime and ‘to take home less than a fiver after they do that extra overtime’.
Also this week, a study carried out by Red C for Aviva revealed one million Irish people are struggling to make ends meet. Those aged between 35 and 54 are the most financially stressed and most pessimistic about their future, according to the survey. Responding to the separate Irish Daily Mail/Ireland Thinks poll, which showed that the majority of voters wanted to see tax cuts prioritised over increased spending, Mr Donohoe earlier this week said: ‘I am increasingly aware of the importance of affordable and sustainable taxation rates in the context of the change our economy is experiencing.
‘We need to make sure what we are doing in the context of what is happening with Brexit, that we have a tax code that, in the long run, is robust, affordable and competitive. But any choices I make will all be based on making changes I am confident we can actually afford.
‘I will not make a tax change for 2018 and find out we can’t afford it in 2019 or 2020...’
Fianna Fáil wants a 2:1 split in favour of increased investment in public services in the budget.
An Irish Daily Mail poll released on Tuesday showed that almost six in ten voters believe Leo Varadkar should prioritise workers’ take-home pay and how much they fork out in tax.
In total, 56% of respondents believed that in the next budget, the new Taoiseach should place the emphasis on tax cuts rather than increased public spending.
The Mail poll revealed the highest support for tax cuts is among 35- to 44-year-olds – an age group often referred to as the ‘coping classes’, and made up of parents struggling with high taxes, childcare bills and mortgages.
Some 66% of this group believe taxes should be cut.
However, the findings were different among 18- to 24-year-olds, as 52% of this group believe Mr Varadkar should focus on increasing spending.
Those between the age of 25 and 34 were similarly split, with 52% saying cuts should be the priority.