Tax breaks to target low earners - Sargent

Green Party launch:The Greens would direct tax breaks at the people who needed them most, the party leader Trevor Sargent said yesterday at the launch of his party's economic policy document.

Fairness and Prosperity: A Green Approach to the Economy, advocates a cut in VAT, a reduction in PRSI and an increase in capital gains tax (CGT) to bring greater equality into the tax system. Mr Sargent said the measures would better direct tax breaks to the people who needed them most, while ensuring the overall tax take did not increase from current levels.

He said the programme sent a strong message that the Green Party was the real alternative as it was advocating thought out, measured proposals that would safeguard economic prosperity for coming generations and ensure a fair deal for this one.

"Unlike the other parties, we refuse to subject Ireland's economic future to a game of auction politics. We are proposing concrete steps for tackling the rising inequalities borne out of Ireland's economic boom.

"Rather than playing political football with individual taxes, we have adopted a systematic approach to taxation policy to ensure it works fairly and efficiently as a whole.

"We invite the electorate to look at the various programmes that have been put forward. We are convinced that the difference between realistic, pragmatic economic planning and wanton political electioneering will be clear for all to see," Mr Sargent said.

The party's finance spokesman, Dan Boyle, said the policy was underpinned by prudence and equity.

"Our spending and taxation provisions have been fully costed, and are grounded in the most expert, up to date economic projections."

"By staying clear of auction politics, we will be in a position to deliver real and sustained investment in badly needed public services. In addition, rather than increasing the tax burden we are redistributing the gains of our economic success more fairly across all sectors of society. There are no stealth taxes contained in our plans and we will restrict the overall tax take to one third of GDP," he said.

He said the policy would tackle the most inequitable taxes that place a disproportionate burden on lower income families.

"We will reduce both VAT rates by 1 per cent within the lifetime of the next government. The potential for retailers to absorb VAT reductions into prices will be obviated by the strengthening of the National Consumer Agency, which will monitor and prosecute such practices."

Enterprise spokesman Eamon Ryan said the Greens were good for business.

"Unlike the current Government, we are not turning a blind eye to Ireland's rising cost base."

Dismissing Progressive Democrats' leader Michael McDowell's claim that the Greens were anti-business, Mr Ryan, said: "We think it is a bit rich for someone who was cossetted in the Law Library when we were busy setting up businesses to be coming out with such a message."