MINISTER FOR FINANCE Michael McGrath said today that he will not be bullied by Fine Gael TDs who are trying to include tax cuts in Budget 2024.
On Monday, Fine Gael junior ministers Jennifer Carroll MacNeill, Martin Heydon and Peter Burke called for the budget to contain tax breaks of up to €1,000 in an opinion piece published by the Irish Independent.
Yesterday, Varadkar told the Dáil that he can “absolutely assure” that there will be a further increase to the the state pension in Budget 2024.
Speaking to reporters today, the Fianna Fáil TD was asked if he was being “bullied” by Fine Gael.
“Certainly not,” McGrath said.
“Anybody who knows me well enough will know that I can be as tough as anybody else when it comes to negotiations. I will always be conciliatory and polite, but I can be as firm as I need to be and I will be.
“I will be designing the tax package and it will be done following close consultation with all of our colleagues across government and will be finalised in the coming months.”
McGrath added that the proposed €1,000 tax cut for full-time workers on an average wage of €52,000 would cost €1.5 billion.
Budget 2024 will be announced in October of this year and will be the first budget delivered by a Fianna Fáil finance minister since Budget 2011.
Some Fianna Fáil politicians have slammed Fine Gael’s comments on the budget, with Senator Lisa Chamber saying:
“Obviously €1,000 in everyone’s pocket sounds lovely. But it’s populist and not costed.”
When asked if he would agree that Fine Gael proposals were populist, McGrath said:
“I’m not getting into putting any particular label on individual measures, all three parties within the government have signed up to a Programme for Government commitment to reduce the burden of income tax.”
“I’m confident given the health of the economy, the strength of the public finances, we will be able to reduce further the burden of income tax.”
Speaking at a Fine Gael parliamentary party meeting tonight, Varadkar said that he expects the Programme for Government commitments on relieving the tax burden on middle income earners to be honoured.
He also said that the state’s budget surplus could allow the government to take decisions on whether to reduce the national debt, increase spending on national infrastructure or set aside money for future pension liabilities and to what extent and combination.
McGrath stated this afternoon that a public consultation had been held on the introduction of a 30% income tax bracket and that he was considering feedback from the public on the matter.
“When I look at the overall issue of taxation, I also have to consider what our other needs might be. For example, can we do more for renters? We have said that we will examine but we haven’t made a commitment in relation to mortgage interest relief.”
“It’s my first budget as Minister for Finance, and I’m very anxious to look at the full suite of taxation policies.”
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