Social Democrats target tax hikes to fund spending increases in healthcare and housing

The Social Democrats have promised to raise revenues through a range of tax increases, including a wealth tax and a third rate of income tax for higher earners, to fund a range of spending increases in healthcare, education and housing, the party said this morning.

The party unveiled an ambitious spending programme which included €1.6 billion of measures aimed at what it called the “structural problem of low income”, including a new disability payment, a €25 per week increase in core social welfare rates and a €2 per hour increase in the national minimum wage.

Former leader Roisin Shortall – deputising for party leader Holly Cairns, who is ill – also pledged that the party would accelerate Sláintecare reforms, at a cost of €1.2 billion. Further additional health spending would cost over €400 million, the party said.

The Social Democrats also said the party would spend an additional €1.1 billion on housing while it would take much of the surplus of corporation tax receipts – some €6 billion – to deal with energy costs and fund a “climate transformation”.

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The alternative budget proposed by the Social Democrats would see an additional €16.5 billion in spending next year (the Government has promised €6.4 billion), of which about half would be recurring spending.

As well as the surplus, the extra spending would be financed by a range of tax increases, including a wealth tax, a third rate of income tax, increases in capital gains and inheritance tax, and other tax increases.

Speaking at the launch of the document, Ms Shortall said the party’s goal was to “improve living standards, make a fairer country and ensure that our lives more sustainable”. She said that priorities for the Social Democrats were “housing, children and climate.”

The Rural Independents meanwhile urged the abolition of the Universal Social Charge.

The grouping of opposition TDs said the cost of scrapping the USC would total around €4.4 billion a year.

But they insisted the measure was always meant to be temporary and the multibillion-euro surplus generated from corporation tax receipts now provides the Government with the headroom to axe it.

The proposal was included in the Rural Independent Group’s alternative budget plan, which it also outlined on Wednesday.

The group has also proposed a €30 increase in all core social welfare payments, including the pension.