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Dublin: 9 °C Tuesday 21 May, 2013

FG backbencher preparing ‘tax transparency’ bill to show where money goes

Eoghan Murphy wants to follow the lead of the UK, where each taxpayer is being given a breakdown of their tax spending.

Image: Niall Carson/PA Archive

A FINE GAEL BACKBENCHER says he is preparing legislation which will see Irish taxpayers offered a breakdown of how their tax is spent, following the lead of new proposals being launched in the UK today.

George Osborne this morning unveiled plans which would see every UK taxpayer given a personalised breakdown of how much they paid in income tax for the previous year, and where that cash was spent.

The latter portion of the document is produced by taking the government’s total expenditure in areas like health, education and so on, and showing a proportion of it based on how much of the government’s total income tax is contributed by any individual taxpayer.

This afternoon Eoghan Murphy called for a similar system to be offered in Ireland – and said he was preparing a Tax Transparency Bill making it a legal requirement.

“Ireland should follow the UK’s lead here in bringing greater transparency to public finances and highlighting the relationship between what people pay in tax to central government and how that money is spent,” Murphy said.

The Dublin South East TD said he had been in contact with Ben Gummer, the British MP who had come forward with the proposals there, and begun working on his own similar legislation as a result.

“The Bill is at an advanced stage and we should be publishing it before the Easter recess. It won’t look too different to what the UK Chancellor has announced today. It’s a good idea and we should adopt it.”

Dáil procedures allow for legislation put forward by backbenchers and opposition TDs to be discussed one day per month, but so far no backbench legislation has been brought forward by government members.

The idea was backed by his party colleague from Dublin South East, Senator Catherine Noone, who said the government had ensure we are communicating clearly with the public at all times”.

“The Irish people have shouldered a lot of the burden of the economic crisis in recent years, and I believe it is important that we make sure we explain how their hard earned taxes are spent,” she said.

“I think that a better understanding of the challenges that we face as a Government might help to rationalise some of the difficult decisions we are taking as we face our responsibilities head on.”

Read: State is overspending by €3,879 per person, according to TD’s sums >

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Comments (19 Comments)

  • Would welcome this. Hopefully they can tackle their expenses next.

    Reply
    • Neil 20/03/12 #

      This is a great idea. Should be like a receipt for the taxes you pay. Needs to be a clean high level breakdown that everyone can understand, as well as more details you can delve into if you want. Ideally it should show the spending that is being paid out of borrowing as well.

      Reply
    • Roll it on! It will be very interesting and I predict gob-smacking to see how much taxpayers money has been squandered on Anglo’ strategY re. Quinn Group on PR and legal costs etc, something that has been facilitated by Government and crucially the taxpayers want to know HOW MUCH HAS BEEN RECOUPED FOR THE PEOPLE OF IRELAND IN THIS STRATEGY.

      Why also did M Noonan lie to the people of Ireland when he said that the bondholders had taken a hit in the order of 50% in the deal-THEY TOOK NO HIT WHATSOEVER.

      See http://quinn-anglo-blogspot.com/ for details of lie and other scandalous facts about this saga.

      Reply
  • Whilst I agree with the sentiment for transparency, I would caution Mr Murphy to proceed carefully and not divide this nation into a 4-Tier Society. I’m sorry to say, until I see real reform in our political class, for the moment, I remain sceptical judging by their actions to date…

    This excerpt from The Telegraph in the UK I found interesting… Full article here: http://tgr.ph/GCzmFl

    “This large minority – the middle and upper-middle classes, in short – feels ever harder done by, because much of the increase in their income since 1997 has been swallowed up by higher taxes. They live in areas where crime rates are low, and where the infrastructure is well-maintained. They are healthier, and so are less likely to use the NHS. They are very unlikely to ever claim benefits, except possibly for the state pension. Their children are probably privately educated. And yet they are paying for the bulk of the welfare state.”

    Reply
  • A positive step.

    Reply
  • Eggers 20/03/12 #

    The tax avoidance one is where the real revelations are.

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  • A very good idea. Sadly there’s a perception building that most of people’s taxes are going to bondholders and debt repayments. A tax statement would show the vast majority of the spend going on health, education and welfare. It’d expose Sinn Féin for their populism on these issues.

    Reply
  • Good to see and hope it gets passed, I was only saying to my mam that they should do this here.

    Reply
  • lolz

    A TD announces he is planning to release some spin and everyone lines up to say how much a great idea it is?

    Reply
    • Aldo 20/03/12 #

      More spin… I highly doubt it will happen. It never ceases to amaze me how gullible people are to these cleverly timed announcements.

      Believe nothing, question everything.

      Reply
  • pearch1 20/03/12 #

    This is a good idea. Another reason why the property charge should be scrapped and incorporated into income tax. This way people could see where this money was going. The property tax is increasingly being seen as a double tax as some people are paying the same tax already, in the form of second property tax or management company fees in estates where the owners are paying for all the services as the Local Authorities are not providing anything except the sewerage drainage on public roads.
    The Oireachtas is costing far too much. If this was slashed by half it would go a long way towards other services.

    Reply
    • Neil 20/03/12 #

      One of the main reasons they want some form of property tax is that FF took so many people out of paying income tax. Which is a great sentiment, but you can´t fund it without a property boom. In the likes of Denmark and Sweden everyone pays income tax.

      Reply
    • Income Tax revenue moves with the economic cycle while a property tax doesn’t. Any economist will tell you it’s a much more stable and also very fair source of income.

      Reply
  • The devil is in the detail – I dont expect much

    Reply
  • We should get Enda to ask all his buddies the tax exiles he socialised with in the US at the weekend.
    In his own words our Diaspora
    From what we saw Enda doing in the states
    Diaspora = Tax Exiles

    Reply
  • Big deal..
    It will be more spin.
    You can be sure of that..
    Can’t wait..

    Reply

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