THE CATHOLIC primate, Cardinal Seán Brady, has warned against the effects of increasing indirect taxes in next week’s budget on the less well off.
“It is accepted that there will be tax increases. The question is: will they be direct or indirect? Indirect taxes sometimes fall most heavily on those with low incomes. So if more indirect taxes are to be introduced they should be put on non-essential goods and services,” he said.
Speaking at Mass in the Cathedral of the Immaculate Conception in Sligo last night, he said, “now is a time for social solidarity, fairness and compassion”. It would be “an immense source of hope if steps were taken to ensure that those who gained least from the boom will not be asked to pay most in the downturn”, he said.
“Those who are better off need to be aware that there are others who have a greater moral claim to be helped right now; otherwise the climate necessary for policy responses, which may be difficult and unpopular but which are just in the interest of the common good, will not exist.”
It would take courage to reverse the trend over the past 10 years of cutting income taxes, he said. “But without the courage to make those serious choices to reverse that trend, there will be a reduction in real income of the poorest of the people. There will be cuts in services provided for those in need of care and support. Unfortunately, that is already happening with some very worthy projects facing closure, postponement or reduction. Which is better, health or wealth?” he asked.
“The fruits of were very unequally divided,” he said.