Sinn Féin is proposing a halt to water charges, abolish property tax and introduce a third rate of tax for high earners, according to the party’s version of the budget published today[WED].
However, at the launch of the party's alternative budget, senior party figures Gerry Adams, Mary Lou Mc Donald and Pearse Doherty confirmed they will pay the water charges, with Mr Doherty saying he would owe Irish Water more money if he did not fill out the application form sent to every household. Aengus O Snodaigh said he was inclined not to pay but had to discuss the matter with his wife.
Mr Adams described the submission as a “Republican budget” while finance spokesman Pearse Doherty said the party had only included in relation to the adjustment measures costed by the Department of Finance.
The document stated a wealth tax of one per cent on assets above €1 million was one of the party’s proposed measures the Department “couldn’t cost”.
The JobBridge scheme was described as “beyond repair” in the document, which said it should be closed to new applicants and “become obsolete” during 2015.
Mr Doherty said stopping water charges would cost €300 million and the abolition of property tax would cost €500 million. The party would increase the tax paid on income over €100,000 by seven cent in every euro by introducing a third rate of tax of 48 per cent, a measure Mr Doherty said would raise €448 million.
Mr Doherty said the Government had “far greater scope than a neutral budget”. The party produced a balance sheet outlining proposed tax income of more than €1.701 billion and tax spend of more than €1.053 billion, with adjustments, savings and Departmental spending resulting in an adjustment of zero.
“In relation to some of the key priorities that Sinn Féin have identified in Budget 2015 is putting €800 million into the pockets of ordinary families. This is done through the abolition of property tax and stopping water charges,” he said.
Exempting people earning less than €17,542 from the Universal Social Charge (USC) would cost €138 while retaining the seven per cent USC exemption rate for medical card holders with an aggregate income below €60,000 would cost €115 million.
A 20 cent increase in excise duty on a packet of cigarettes was proposed to raise €29.4 million, with a increase to three per cent in betting shop tax to be applied to the customer bringing in €50 million.
According to Sinn Féin, re-introducing the second home charge and increasing it from €200 to €400 would raise €144 million, while an increase to 40 per cent of Capital Gains Tax would bring in €116 million.
An increase in Capital Acquisitions Tax to 40 per cent and introduction of a 15 per cent reduction in group thresholds would raise €112 million.
The party proposes reducing TDs pay to €75,000 and Senators to €60,000 and capping special advisers’ pay.
On pensions, the party advocates reducing the earnings cap for pension contributions from €115,000 per annum to €70,000 to raise €110 million, and standardising the relief at which tax back can be claimed, beginning with a reduction to 28 per cent in 2015, to raise €235 million.
