The Green Party is proposing to cap the amount of tax relief high earners can claim to ensure everyone in society pays a share of the tax take.
In a pre-budget submission published yesterday, the party said the "obsession" with tax rates among other parties was misplaced. The party wants a system of assessing the full economic, social and environmental costs and benefits of spending tax revenues.
According to finance spokesman Dan Boyle, "The Green Party believes that any minister for finance should be able to answer the following questions in respect of every tax expenditure: 'What is its social, economic or environmental purpose?' 'Who benefits?' 'How much tax is forgone?' 'What are the benefits for Irish society?' and, following from this, 'Are the costs justified?'
"At present, Brian Cowen cannot give satisfactory answers to these questions."
In relation to the situation whereby some high earners pay no tax because of their use of generous reliefs, he was seeking the introduction of a maximum limit for tax relief, which would cap the cumulative amount of relief available across all schemes for high earners, and an immediate review of tax residency rules.
The party also proposed a number of measures to reduce poverty and inequality, including:
personal social welfare rates and the non-contributory pension to be increased by €16;
an increase in the qualified adult allowance to 75 per cent of the full rate;
a comprehensive package on children and childcare and incentives to develop childcare infrastructure;
a cost of disability payment;
an end to the means test for the carer's allowance;
an examination of introducing a carer's refundable tax credit.
The party's enterprise spokesman, Eamon Ryan, said it wanted to increase support for the development of indigenous enterprise. The budget should therefore include:
Leader Trevor Sargent said his party was re-examining its economic and tax policies. "The measures outlined in these documents are aimed at reducing inequality, encouraging innovation, creating jobs and delivering a secure supply of energy," he said.