Sir, - The admission by the Government that an increased percentage of the workforce will pay the top of income tax in the forthcoming tax year will come as a shock to people who voted the FF/PD government into office. However it comes as no surprise to those of us who believe that real tax reform can only come about through a dramatic widening of exemption limits and tax bands.
The cosmetic alteration of the tax rates, particularly the top rate, provides further comfort to the highest earners in the country while denying just taxation to those many workers who will find themselves paying the top rate for the first time next year. A reduction in the top rate from 48 per cent to 46 per cent is irrelevant to those who have previously paid only the standard rate of 26 per cent. Where is the economic justice in workers receiving an annual pay increase and increment only to find themselves paying a higher rate of tax?
In three successive budgets introduced by Ruairi Quinn the number of people paying at the top rate was reduced each year. That is real tax reform. That is the application of justice in economics.
The truth has come out: the objectives of Partnership 2000 are in jeopardy. The wealthy pay less tax while more workers pay the top rate. You can fool some of the people some of the time . . . - Yours, etc.,
From Declan Walsh
Chairperson, The Labour Party, Cork North Central, Lancaster Quay, Cork.