Reactions To Budget 2000

Sir, - I agree with your assertion there may be economic rationale for the individualisation of tax bands, but strongly disagree…

Sir, - I agree with your assertion there may be economic rationale for the individualisation of tax bands, but strongly disagree that there is no basis in equity. Firstly, this is an issue which affects higher rate taxpayers only. It is of no consequence to anyone earning the average industrial wage.

Secondly, where is the equity in a single person paying the higher rate of tax on income over £17,000 while someone who is married and entitled to claim double allowances does not pay this rate until they earn £28,000?

Thirdly, to presume that all taxpayers claiming double allowances have non-working spouses is wrong. Given what we know about levels of compliance in our tax system, couples where one party is a PAYE taxpayer and the other party is not, could enjoy considerable advantages over others where both parties are in the PAYE net.

Fourthly, people claiming double allowances may be childless or have no dependent children.

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Finally, and perhaps most importantly, for younger people the possibility of a stay-at-home spouse has disappeared because of the cost of housing. Regardless of tax allowances, all marginal income is required to pay these costs. Therefore, the continuation of double tax bands could be characterised in general as a subsidy from younger, asset-poor people to (slightly) older people who have become asset-rich in recent years. - Yours, etc.,

Hugh McCutcheon, Donnybrook Green, Dublin 4.