Take home pay will not be hit by budget
Fine Gael TD for Dublin North, Alan Farrell has welcomed the Government’s decision not to increase income tax in the 2012 budget. It is a measure designed to reward workers and get people spending.
“I was delighted to hear Minister Noonan announce that there will be no increase in income tax. This highly significant announcement will be welcomed by every full time worker in the country. If you are an income tax payer, your take home pay will be the same in 2012 as it is now.
“For the first time since the downturn occured the budget has not targeted income tax. We have taken this stance because it’s important to incentivise employment and encourage people to spend money. Given the economic pressure that the Government is under, I take great heart from this.
“This was one of the mainstays of Fine Gael’s election manifesto and I am delighted that the Government has carried through with its commitment. For me, it says that the Government is serious about encouraging spending and promoting employment. Cutting income tax would directly deter spending, which is the last thing we should be doing.
“Direct taxes such as income taxes have an adverse impact on economic growth and jobs. It is well known that when income tax is high, jobs are lost.
“This Fine Gael led Government is committed to reward and incentivise work. This is why we abolished the Universal Social Charge (USC) for people who earn less than €10,000. As with the decision not to increase income tax, this is designed to reward people for their work and get people spending money.”