AS THE Government prepares to broaden its revenue base in the next budget and awaits recommendations from its Taxation Commission, the least unpopular measure would be the introduction of a property tax, according to the latest Irish Times/TNS mrbi opinion poll. The precise nature of such a tax has not been specified. But support for the measure fell among respondents as the size of their homes increased. And farmers clearly did not expect agricultural land to be affected.
Given the current level of Government unpopularity, it is hardly surprising that supporters of Fianna Fáil and the Green Party are most opposed to further tax rises. However, one voter in three regards such a development as inevitable, with majorities in favour of additional revenue-raising measures to be found among top earners and pensioners. After a property tax, support for an income tax increase and a new carbon tax run into double figures. But public willingness to shoulder a fresh burden is extremely limited. And, again, attitudes reflect the impact such taxes will have on the spending power of individuals.
Protest marches and industrial unrest have been threatened in response to the pension levy on public sector employees. Resistance is most evident in Dublin, where the majority of public servants work. But such actions may deepen a polarisation that already exists between public and private sector workers. Large majorities within both groups now insist they are taking more pain, arising from the recession, than their counterparts. This disagreement has been resolved in favour of private-sector workers by the general public in the opinion poll. But the failure of public servants to acknowledge their protected and privileged positions and their unwillingness to accept a reduction in living standards, is an issue that should be addressed by their union leaders. A gap of 20 per cent already exists between comparable pay levels in the two sectors, without taking into account near-permanent positions and pension entitlements. That is the context in which the levy is seen in this poll.
In spite of a general resistance to tax increases, particularly among low earners, attitudes to unpopular fiscal measures appear to be changing as the severity of the economic downturn and the incidence of job losses intensifies. Negative reaction to the €2 billion savings package unveiled last week was much less pronounced than the furore caused by the November Budget. It is interesting too that while 49 per cent of voters felt the Government should have persisted with negotiations involving the social partners, some 41 per cent disagreed. Faint shoots of political recovery may be evident in such disagreement as sections of the public begin to support necessary, but unpopular, measures. For this trend to develop, however, determined and even-handed leadership will have to be provided by Brian Cowen within a clearly articulated framework for economic recovery. And the Minister for Finance must continue to exercise his authority and clean up financial services.