Is the Government really saying it is fair that people earning less than the minimum wage be asked to pay an income levy at the same rate as someone earning €50,000 per year?
This is the question put by Sinn Féin North East EU Election candidate Cllr Pádraig MacLochlainn, who was reacting to yesterday’s Budget. He said the Budget was nothing more than the Government targeting the low paid while failing to introduce measures to stem rising unemployment.
Cllr MacLochlainn said it is “disgraceful” that those earning less than the minimum wage - around €15,000 a year - are being asked to pay a two per cent income levy.
“Is the Government really saying it is fair that these people be asked to pay a levy at the same rate as those on €50,000 per year?” he asked. “People on such low wages do not have the capacity to meet such demands. They are barely getting by.”
He said the Government “should have completely removed the PRSI ceiling”, which, he argues, would not have required those on the minimum wage to be brought into the tax net.
“They should have introduced a 48 per cent tax rate for those earning more than €100,000 a year,” he said. “Such measures would have ensured fairness and helped address the crisis in public finances. Instead ordinary workers - those struggling to meet mortgage repayments and childcare costs - and the low paid were asked to pay the highest price.”
Cllr MacLochlainn said the Budget will not stem unemployment or create jobs.
“The Government is cutting €200 million from the environment budget, principally social housing and water infrastructure,” he said. “They are cutting €54 million from the school build programme. They are cutting €300 million from public transport. If the Government is serious about addressing unemployment they should be doing the exact opposite of what was announced.”
