Last week, Rossa Whiteand Seán Healydebated the question: Should Brian Cowen cut income taxes in the Budget? Here is an edited selection of your comments:
It is simply not possible to run the services that are necessary to create a cohesive, inclusive society in a low direct-tax economy. The tax system must be fair and progressive. During the Celtic Tiger period, those earning most were favoured in budget after budget. Instead of delivering a utopia, as promised by the right wing, the result is public services in chaos and a community living with growing violence and angst.
- Jim O'Sullivan, Ireland
Seán Healy begins with: "The core policy objective on taxation in the Budget should be: to collect sufficient taxes to ensure full participation in society for all." Really? How does taxation ensure that? If that's the case, he should be arguing for no tax on condoms given the vast amount of poverty that is due to single parenthood and consequent non-participation in society.
- John, Dublin
It is hard to believe that even though public services are in a dreadful state (schools, hospitals, public transport) people suggest that they should get worse. Those better off have a responsibility to look after those less well off. With all the wealth in Ireland, I would have no problem paying a few euro more if poverty could be alleviated.
- Robert N, Ireland
Both writers agreed on the need to reduce taxes through credit increases; this is a relative gain for the poorest. Just because a high earner gains from cuts doesn't make a policy inherently bad - they do work hard for their money, after all. Income tax penalises work; why not increase tax on carbon and use the revenue to cut other taxes ("eco-tax shift")? High taxes cripple economies; I would trust a poor person to spend their own money rather than have a government do it for them.
- Kevin, Ireland
It is completely counter-intuitive to provide tax credits to help those in perceived difficult circumstances, and then make them non-refundable - those on lower incomes do not benefit. Using tax credits imaginatively, to target those who need it most, would appear to be an infinitely more intelligent, progressive way forward, rather than simply increasing the standard rate bands.
- Blaithin McLoughlin, Ireland
Yes. He [ Brian Cowen] should be aiming to bring public sector pay back in line with the private sector. If he makes meaningful progress on this, there will be plenty of room for tax cuts.
- Amergin Niue
I agree with Rossa White's assertion that the best way to cut income taxes is to increase tax credits and widen the standard rate band. I agree with Seán Healy that the core policy on taxation should be to ensure fair participation in society for all so that those who have more, pay more and those who have less, pay less. I also agree with Healy that tax credits should be refundable.
On balance, I voted "no" because I think Cowen needs to be careful and prudent in this Budget and not give too many concessions at a time of lower economic growth, but I have to admit that I am no expert.
- Conor, Ireland
Online: join the debate @ www.ireland.com/head2head