Labour think-in: No tax cuts for those on €100,000-plus

The Labour Party is to rule out reducing taxes for those earning more than €100,000 in its general election manifesto.

Ahead of the resumption of the Dáil next week, the party will debate the details of its election platform at its away day event in Co Wicklow on Tuesday. The platform will be divided into five key areas – healthcare, tax, social reform, childcare and better employment opportunities.

The Irish Times understands this will only call for a reduction in tax for middle and low-income workers.

Tánaiste Joan Burton also gave a strong indication on Monday the threshold at which workers enter the higher rate of tax would be changed in next month’s budget. It is expected the threshold, which begins at €33,800, will be increased by at least €1,000. Ms Burton said workers begin paying the higher rate of tax too early and this needs to change.

Following newspaper articles speculating about the budget, Minister for Public Expenditure Brendan Howlin urged Ministers to stop raising hopes. Ahead of briefing his colleagues on the budget on Tuesday, Mr Howlin said expenditure expectations that have been touted will never be realised.

The budget will present a late opportunity for the Coalition to court voters ahead of the general election, which Fine Gael TD Áine Collins on Monday claimed would be on February 26th. Taoiseach Enda Kenny was less specific when asked about a date but said he was sticking to his plans not to dissolve the Dáil until next spring.

Working with the people

“I’ve always said the general election would be held in the spring of 2016. I see no reason to change that,” he told reporters in Co Mayo.

Mr Kenny said the focus in coming weeks would be to continue the "serious progress the Government, working with the people, has made in the past 4½ years". "Michael Noonan would like to see the impact of the budget go behind every door for peoples's benefit. That's our focus now."

The Tánaiste told party members a phasing-out of the universal social charge and an increase in the Christmas bonus for pensioners and welfare recipients to €115 for a single person and €220 for a couple would be included in the budget package.

Minister for the Environment Alan Kelly is to unveil measures to assist the construction industry. He is pushing for funding for infrastructure and reduced taxation on building materials.

Labour on Monday backed an election voting arrangement with Fine Gael but it was agreed not to use the details in the party’s literature or posters.