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FIANNA FÁIL IS going to battle with Fine Gael over cuts to the Universal Social Charge (USC) in the Budget.
Fianna Fáil is adamant that the confidence and supply agreement with Fine Gael agrees to steadily reduce the USC for low and middle-income earners.
However, over the summer months, Fine Gael has discussed increasing the entry point for the higher rate of tax.
Last week, Finance Minister Paschal Donohoe said he plans to amalgamate PRSI and USC over the next few budgets.
Fine Gael’s plans
He also gave specific details about increasing the standard rate cut-off point for income tax.
“The top 10% of income earners pay 24% of total income tax and USC, the top 6% pay 49% of total income tax and USC, and the top 26% pay 83% of all income tax and USC collected in our country. It is absolutely right that those who earn more pay more and those who earn less pay less.
“But a taxation system that takes more than 50% of the income of someone just above the average industrial wage is not fair, it is not efficient and it is not sustainable. I want to gradually increase the standard rate cut-off point for income tax. We will prioritise band widening over rate reductions. I believe the issues relating to the standard cut-off point and levels of USC for those with low or middle incomes, are areas we have to make steady progress on,” said Donohoe earlier this month.
‘Mixed messages’
Ahead of the party’s think-in in Longford today, Fianna Fáil’s party leader Micheál Martin said the government have been giving “mixed messages” about tax cuts over the summer.
He said his party would be monitoring any fluctuations from Fine Gael in the agreement which is propping up the government.
“There have been promises of tax cuts. There have been promises of pension increases. One minister says it’ll be a fiver, another minister says something else. There have been all sorts of promises and to be honest it’s a bit incoherent. It’s confusing to the general public because an awful lot was happening in July/August in terms of the budget. As you get down to the wire the room for manoeuvre is becoming more narrow. Public services need improvement and delivery,” said Martin.
“We want to remain faithful to the confidence and supply arrangement,” he said, adding:
On the tax front it’s very clear in the confidence and supply that both parties are signed up for a reduction in the universal social charge.
The most effective one would be reducing the 5% to 4.5%. That would take in 1.3 million people. It would be more effective than what Fine Gael are proposing which will take in far fewer people on higher incomes.
We would benefit people on a wider income, particularly low to middle incomes. Anything up to €70,000 would benefit from our proposal. We believe that subject to the available funding that’s our priority. That would be the most effective way of dealing with tax.
A deal’s a deal says Fianna Fáil
He said if Fine Gael want to introduce tax reductions the party will have adhere to what’s in the confidence and supply agreement.
The agreement does specify: “The government must introduce reductions in the Universal Social Charge on a fair basis with an emphasis on low and middle income earners.”
“It’s very clear from the outset that what underpins our support for the budget is the confidence and supply,” he said, adding that the document is clear cut about what both parties signed up to in order to get a government formed.
The confidence and supply is very clear and both parties signed up. I’ve been getting mixed signals from Fine Gael over the summer because at certain times they are talking about their long-term plans. They acknowledged the existing of the confidence and supply in some of their comments during the summer.
But we’re very clearly focused on what we’ve signed up to in the confidence and supply agreement. This will be the second budget of that confidence and supply and we believe the commitment by both parties should be respected.
This must be true, it’s written by a senior Fianna Failer and they’re experts on cynical power grabs! They never reformed the Seanad in any way in all the years they were in power yet now they say ‘it needs reform’ because someone’s threatening to abolish it, pretty cynical there really.
Abolish and you create the biggest political power grab since the British occupation of this country.
Dont know why your red thumbing Alan . That is factually correct . The irish president also loses any power to oppose implimenting laws from the EU only the Dail will now be required to pass them
Abolish and you get rid of a talking shop with no power or teeth. Good riddance.
Whats cynical is that political parties are using the referendum as a political point scoring exercise and a leader who is more interested in photo bombing than debating . And lets not forget his lies in the dail last week €20 million to be saved !
How can you grab power from an institution that never had it I’m the first place…?
It’s not all about you, O’Reilly.
From that response you obviously haven’t a clue on whats at stake. I suggest reilly who trot back to bed wake up a read up on this important referendum. Or fall in line with the rest of the ill informed FG group.
Not a clue? Like those asking that this ludicrous joke be kept?!
Way to ignore all those calling for reform there enola. :D
I hear the bell a ringin’,
It’s coming to an end,
And I ain’t been this happy since,
I don’t know when.
It’s the end of Seanad Eireann,
Crumble and down she’ll fall,
But that bell will keep a tollin’,
Till they reform the Dáil.
AlanH, what are the Seanad currently gate-keeping that renders its abolition a significant cause of concern?
Agree. Vote NO in the forthcoming referendum to stave off political vandalism. If the Seanad is perceived to be ineffective who do we think might be responsible for that? No less a person than our esteemed Taoiseach stated in a radio interview a week or so ago that the “Seanad had been hijacked by the Dail”. There you have it. Clear as crystal – The Seanad has been hijacked by the Dail. If its broken fix it.
Regardless buddy I have a medical kit in my press. I have not opened it at all in the two years ive had it , so far it has served me no purpose at all and it taking up space in the press. But maybe im just mad thinking its best to have something and not need it than need something and not have it
Speaking of power my only piece of power hasn’t arrived in the letter box yet, my voting card!!!
You don’t need your voting card. Just bring ID to your usual polling station.
Cool man thanks for the heads up
No problem Marc
Cynical in that the money being saved is already ear marked for a new court of appeal
That’s also a bad idea, Shay.
the Seanad is a joke , given the EU and European courts etc there is much more oversight then could be imagined when it was setup originally. Everything about this issue is token though , why don’t we get asked about serious issues???? I want a referendum that a future treacherous government wont have the power to bailout private banks and be more concerned about the interest of foreign hedge funds over its own citizens.
It’s a bit rich for Fianna Fail to lecture us on power grabs. Just two Fianna Fail politicians, Brian Cowen and Brian Lenihan, decided on the blanket bank guarantee in September 2008. The rest of the cabinet wasn’t even consulted, never mind Dail Eireann, never mind the Senate.
Paul the Cabinet were in different locations on the night of Sept 30th 08….they had a conference call meeting and all who couldn’t be contacted were consulted for their voted…it is illegal to make government decision without the consent of the cabinet…this government arguably are behaving unconstitutionally by virtually running the country through the 4 man EMC ( economy management council ) made up of Msrs Howlin , Noonan Kenny and Gilmore…
What was Niall Collins saying when Fianna Fáil was preventing by-elections to the Dáil in order to preserve its artificial majority? The fundamental protection of citizens is through the right to vote. A right that was denied them too long by Fianna Fáil who know what a real power grab looks like. Where were you then, Niall?
It looks like FG are trying to do all that is necessary to reduce the possibility of FF or anybody standing on FG’s heads again..FG don’t give a toss about the Seanad or anybody else…This is an exercise in self-preservation.
Now theres a surprise a politician asking us not to shut down there handy part time number that they can rely on even if the ordinary citizens dont elect them.
No medical cards for children with special needs but theres unlimited funds for the political elite !
Whats your point MK..??
I’m loath to agree with Fianna Fáil on much these days, but, they’re right to oppose this referendum. It’s bad – very bad – for our democracy. See the reasons why I’ll be voting no here: http://wp.me/pJEMW-cQ
Finna fukoff…
How did FF deny people their voting rights Colin..??
Wouldnt listen to a word out of a FF polititian, and the way things have transpired over the past few years i wont be listening to any FG or LAB clowns either
The only way forward is reform of the senad. It’s a crèche for failed politicians and appointments. Elect them like in the Dail but ban all teachers from applying.
have your say