Stamp duty reform 'won't hit public spending'

Opposition parties were today accused of making facile criticisms the Progressive Democrats proposal to consider stamp duty reform…

Opposition parties were today accused of making facile criticisms the Progressive Democrats proposal to consider stamp duty reform.

The party's deputy leader Liz O'Donnell insisted that the proposal would not come at the expense of government spending on schools, roads or hospitals.

Addressing the Network Ireland annual conference Ms O'Donnell said: "Predictably, the Opposition claim that to do so would mean less is to be invested in vital infrastructure".

The Dublin South TD added: "This, of course, is facile and anti-intellectual. When it comes to government spending, it is not either/or. It is not a choice between lower stamp duty and new schools, roads or hospitals. We can do both."

READ MORE

"We want to help first-time buyers and couples with children seeking to move home.

"Among the solutions being discussed by my party are the abolition of stamp duty for moving home, a reduction in stamp duty rates, banding stamp duty across the rates, and the option of allowing stamp duty to be paid over the lifetime of the mortgage.

"Given its impact on thousands of homeowners and would-be homeowners around the country, we believe there is scope for a significant re-adjustment."

The PDs believe stamp duty reform could be vote winner in next year's general election. The party discussed its stamp duty plans last month at a Dáil think-in.

However Green Party leader Trevor Sargent accused Tánaiste Michael McDowell of seizing the issue as a publicity stunt ahead of next year's General Election.

Ms O'Donnell told the conference in Galway the PDs saw tax reform as an instrument of social and economic justice.

"Our view is that when tax is fair, people are compliant," she said. "When tax is penal and unjust, there is always need for reform.

"In fact we still believe we can do more on tax. Use some of the benefits of economic growth to significantly reduce the tax burden on low and middle income taxpayers."