There will be no income tax increase in the State’s economic recovery from Covid-19, Fine Gael TD Neale Richmond has said.
The Dublin Rathdown Deputy, who is on the Oireachtas Finance Committee, was responding to a new report from the ESRI that stated income tax increases may be necessary to meet increased spending requirements.
“Income tax increases are not being considered as part of Ireland’s economic recovery from Covid-19. We will not penalise workers with increases in income tax.
“When people return to work, we want to get them back spending and saving – not paying increased tax.
Fine Gael and Tánaiste Leo Varadkar has been quite clear on this issue. We will not be increasing people’s income tax.
“The Programme for Government 2020-2025 commits to no increases in income tax or Universal Social Charge for the lifetime of this Government. This should and will not be changing.
“The public health restrictions have been hugely detrimental to businesses and workers and now is the time to help businesses recover and not penalise workers with increased income tax levels.
“Ireland is well placed for economic growth post-Covid without the need for an increase in income tax; the domestic economy is set to grow by 2.5% in 2021 and a further 7.5% in 2022.
“Employment is also projected to increase by 80,000 in 2021 and 225,000 in 2022.
“Now is the time to get businesses up and running, get people working and get money back in their pockets.
“Ireland entered this crisis in a good position economically, with a €1.8 billion rainy day fund and a €1.8 billion surplus and this has helped us in our response and will continue to benefit us through to our recovery.
“There should and will be no income tax increases,” Deputy Richmond concluded.