Harney unveils PD tax reforms

THE Progressive Democrats leader announced a five point tax plan, which she committed the party to implementing if it gets into government after the next election.

Ms Mary Harney said the principles underpinning it were:

-The basic rate of tax no higher than 20 per cent and the top rate no higher than 40 per cent.

-No worker should be required to pay more than one tax on his or her income.

-No worker earning less than the average industrial wage should have to pay tax at the top rate.

-No worker should ever be taxed at a rate of more than 40 per cent on any part of his or her income.

-All allowances and bands should be index linked to protect taxpayers against inflation.

Ms Harney was speaking during the resumed debate on her party's private members' motion calling for fundamental tax reform as an integral part of any successor to the Programme for Competitiveness and Work.

The Minister of State for Finance, Mr Hugh Coveney, said no reference was made to the funding of the PD tax reforms.

There had been substantial progress in reforming the tax system in recent years.

"Certainly the level of progress has not been as rapid as we would all like. However, lit has been as rapid as prudent management of the economy I would allow."

Ms Kathleen Lynch (DL, Cork North Central) estimated, the total cost of the PD tax proposals amounted to £2.2 billion. "It does not require great mathematical skills to deduce that somebody, somewhere, will have to pick up the tab for this largesse."

Dr Pat Upton (Labour, Dublin South Central) accused the PD spokesman on finance, Mr Michael McDowell, of seeking to impose on the Irish people a low wage, low skilled economy where the unemployed were forced into the marginal fringes of the labour market to work for, and on behalf, of the PDs and their friends.

A Government amendment to the motion, welcoming its "firm and prudent" management of the economy, was carried by 64 "votes to 54.