Greens propose review of income taxation

The Green Party today called for a radical review of the income tax system in its pre-Budget submission.

The party proposed the introduction of a "more progressive" system of taxation with a top rate of 45 per cent rate on taxable incomes over €100,000 and a new narrow intermediate rate of 33 per cent on €1,000 of taxable income. The system would also and exempt all at minimum wage levels - which it wants set at €7 per hour - from paying income tax.

Another key element of the submission was a year's "holiday" on contributions to National Pensions Fund. This freeze would be combined with an increase in annual budget deficit of 2 per cent of GDP to fund what the Greens called the national infrastructure deficit.

The Greens are also demanding a reversal of the €58 million in Social Welfare cuts that were announced in the Book of Estimates earlier this week. They want to see a €12 per week rise in basic welfare payments and increases in child benefit, disability and carers' allowances.

The party's finance spokesman, Mr Dan Boyle TD, accused the Government of levying "an array of disproportionate and unfair taxes" on most taxpayers, while failing to ensure the wealthy "pay fair and proportionate taxes".

Transport spokesman Mr Eamon Ryan TD said the party wanted to see greater investment in public transport rather than the "Government's insistence on over-developing our roads infrastructure".

The party is also calling for the introduction of a carbon tax next year, the profits from which would be recycled through reductions in other taxes such as VAT, Employers' PRSI and through increased social welfare payments and grants for energy efficiency.