The Budget means that a worker on the current minimum wage loses €17 a week, twice as much as those on Social welfare. This is a huge disincentive to work and is totally wrong. The lowering of the tax bands and the Universal Social Charge in combination severely attack the low and medium paid, destroying jobs.
In contrast FG’s proposals reduced tax on the low paid, to encourage work, by leaving the tax allowances and reducing VAT on labour intensive services such as repairs, hairdressing, hospitality. This would be funded by more aggressive reform and cutting in the public service, including reducing the number of National Politicians by 35%.
A 1 earner family earning €50,000 with 3 children will lose €1,800 a year with FF but only €1,600 with FG. Labour Party tax proposals also make an average family pay €600 more in tax a year while keeping the dole at the present level.
FG will improve the position of those that go out to work by at least €6 a week compared to those who don’t work. FF and Labour both will do the opposite, a sure way of destroying jobs!