Tax cut for wealth will not stimulate the economy – Tóibín
Sinn Féin Meath West TD Peadar Tóibín has castigated the Fine Gael and Labour for dressing up a proposed income tax cut for higher earners as an economic stimulus.
Speaking today after Richard Bruton floated the idea in the media last week Deputy Tóibín said;
“Sinn Féin’s believes that if you work hard, use your smarts and take risks you are entitled to be compensated properly for doing so. But we also believe that the more you earn the more tax you should pay.
“Labour and Fine Gael regularly state that high income taxes on the wealthiest is anti-jobs. This is clearly hocus pocus. Foreign Direct Investment is interested in making a profit. This is determined by corporation taxes, cost of inputs such as electricity and gas, the skills and education of the workforce, language, access to markets, innovation etc.
“The Netherlands, with one of the highest marginal tax rates in Europe, receives the most foreign direct investment per capita. A fair tax system is not incompatible with a thriving economy. In fact, as we see in many nordic countries, a fair tax system is the foundation of a sustainable thriving economy.
“After heaping new regressive stealth taxes such as the family home tax and water charges on low and middle income earners Fine Gael and Labour now seek a cut in the most progressive form of tax, income tax.
“In recent days Richard Bruton even went as far as to call this economic stimulus. If it were it would first of all be grossly inequitable. Secondly such a stimulus would be blunt and blind, leaking massively from the economy and subsidising the German motor industry or the electronics sector in the Far East.
“This tax break stimulus policy may create jobs, but just not in Ireland unfortunately.
“Contrast this to the Sinn Féin Stimulus proposals with €13 billion euros focused on energy efficiency, energy price stability, communications competitiveness and a healthier better educated work force.
“Our Jobs stimulus, now accepted as necessary by even the architects of current austerity would have low leakage and a high multiplier effect.
“The Sinn Féin Jobs stimulus would have a regional distribution which would combat the emigration of our young people throughout the state.”