Guide to basic income proposal is published

The Conference of Religious in Ireland has published a simple question-and-answer guide to its basic-income-for-all proposal

The Conference of Religious in Ireland has published a simple question-and-answer guide to its basic-income-for-all proposal. Surfing the Income Net, prepared by Father Sean Healy and Sister Brigid Reynolds, directors of CORI's Justice Commission, explains how a guaranteed, untaxed weekly payment to every, man, woman and child can be implemented to the benefit of all while ensuring that nobody would be below the poverty line.

"Irish society needs a radical approach to ensure the inclusion of all Irish people in the benefits of present economic growth," said Father Healy at the launch.

"Basic income is such an approach," he said.

He welcomed the Government's commitment to publish a Green Paper on basic income before June 1999, and its commitment to "giving full attention to an examination of the principle of basic income, having particular regard to the CORI proposals". Father Healy said there was a real danger that the plight of large numbers of people excluded from the benefits of the Celtic Tiger economy would be ignored. It was being assumed more and more that a rising tide would lift all boats, he said, but this was an assumption that had proved false in the past and would prove false again. Surfing the Income Net answers the 25 most frequently asked questions concerning the proposal, which would mean that every person would receive a basic, tax-free, unconditional income from the State.

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This would not be means-tested, would involve no signing on, and would guarantee everybody enough money to keep them above the poverty line.

In 1997 figures, and based on extensive research by CORI, the proposal envisages that people would receive the following amounts:

Age Amount per week

80-plus: £82

65-79: £77

21-64: £70

20: £45

19: £35

18: £25

0-17:

This money would be paid each week through a bank, post office, building society or credit union, with each adult receiving a separate payment. Income for children would be sent to the appropriate caring adult. The system would be financed by one single tax rate. If current tax reliefs are to be maintained, it is proposed this rate should be 49 per cent.

If current reliefs are eliminated, but all farm income supports are maintained, a tax rate of 48 per cent would be required. Employee's and employer's PRSI would be abolished, with a social responsibility tax of 8 per cent introduced for employers. This latter, CORI estimates, would still mean an overall reduction of £200 million (at 1997 figures) in payroll taxes being paid by employers.

A basic income system would be work-friendly, the book says. It would eliminate poverty and unemployment traps while promoting equity. It would spread the burden of taxation more equitably, treat men and women equally, be simple, transparent and efficient in terms of the labour market.

It would also reward types of work in the social economy often ignored by the market economy, e.g. household work and childrearing.

Surfing the Income Net is available from bookshops, or directly from CORI's Justice Office, at Tabor House, Milltown Park, Dublin 6, and costs £2.50.

Patsy McGarry

Patsy McGarry

Patsy McGarry is a contributor to The Irish Times