# Funding Nursing Home Care - Tax or PRSI?



## rainyday (27 Jun 2003)

Today's Irish Indo tells us that PRSI hikes considered to fund cost of elderly care. I find it strange that PRSI would be considered to be preferable to PAYE for raising required revenue.

The Indo report states 





> Other options were considered, including higher income taxation and taxation of inheritances - but the report concluded this latter proposal was unlikely to receive political support.



I can't see why PRSI increase is any more likely to get political support than a PAYE increase.

The problem with funding from PRSI is the impact of the PRSI ceiling (around 40k, I think). This means that salaries above this ceiling will be exempt. This means that low-paid will pay a much higher percentage of their income towards these costs, when compared to the higher-paid. This breaches the fundamental principle of 'from each according to his ability'.


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## Tommy (27 Jun 2003)

It is easier for a government minister or Taoiseach to say "we cut taxes" if they increase the PRSI burden on taxpayers than if they increase income tax...


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