I'm not sure that taxing families as a unit rather than as individuals would amount to a sell out. I suspect that many of those at whom the sop is aimed wouldn't traditionally be Labour voters and that FG are more likely to hoover up such votes given that they are making similar noises on this issue.I find it very disturbing that the Labour party, a very active force for positive social change under Dick Spring, is now selling out in order to garner support from floating middle-income rural voters.
I agree that this is FG ground but I'm surprised that Labour would associate with the Iona Institute.I'm not sure that taxing families as a unit rather than as individuals would amount to a sell out. I suspect that many of those at whom the sop is aimed wouldn't traditionally be Labour voters and that FG are more likely to hoover up such votes given that they are making similar noises on this issue.
Ditto; and vice versa.. . I'm surprised that Labour would associate with the Iona Institute.
I'm not quite sure that the , head honcho of the Iona institute qualifies as 'no voice'.as traditional conservative Catholics, a large proportion of this country, have no voice in national print or broadcast media it is not surprising that some of them are trying to get their message out.
And hardly too surprising given the demographic of Labour party membership in the country. Implementing this policy which will reward some of their solidly middle/upper middle class support (people earning over 55k a year - the average worker/family will get nothing from this policy) which can be wrapped in a populist message about "looking after families". Meanwhile the Iona institute get to push for a tax environment where a woman returning to work is facing marginal rates of tax straight off the bat. I originally typed "spouse" instead of "woman" in the above sentence but let's face it, the policy is designed to support the "traditional" middle class family - i.e. wife doing the housework and cooking, husband out working for a salary wether there are children to be looked after or not. I've never given FF a first preference in my life but Labour and FG's policies are forcing my hand in the upcoming election.Given that this initiative by Iona coincides completely with Labour policy in this area, surely it would hypocritical NOT to have participated.
Personally, I think individualisation has gone far enough. Reversing the policy is estimated to cost up
to €700 million a year on an ongoing basis. However we could stop widening the penalties against
single income families in each annual Budget. Another step would be to bring the Home Carers Credit
which is currently €770 per annum up to the level of the PAYE credit of €1760.
To do this in one year would cost up to €100 million. I believe it would be money well spent. It would
also allow couples more space in which to decide what is best for them and their children. It would
allow greater options in lifestyle, particularly for families struggling to care for 2 or 3 young children
in their early years.
Ironically, if our married couple were to separate and were both working and agreed some joint
custody arrangements for the children, they would immediately each qualify for a special lone parents
tax credit of €1,760, and in addition to a further PAYE tax credit for the separated husband and wife.
Small wonder that many single income families really feel that the State has it in for them.
Based on the figures as set out by John Paul Byrne, they would seem to be right.
We favour a supplementary child benefit scheme, which would top
up child benefit for families on low incomes, subject to a generous withdrawal
rate to reduce the possibility of poverty traps. We also favour more regular
payment of both the primary and supplementary child benefit. The
supplementary scheme would incorporate FIS and CDAs.
I've one, which I've offered before in these pages, although in a different context — means-test Child Benefit. Families with over e.g. €100K pa income, which are not so numerous as to make the cost of assessment prohibitive, get reduced benefit or none at all.
I reckon it'd be a great vote-winner...
Speaking as a parent with a household income well over the €100K mark I agree completely with your idea. I would use the money saved to increase the child benefit for those who really need it.I've one, which I've offered before in these pages, although in a different context — means-test Child Benefit. Families with over e.g. €100K pa income, which are not so numerous as to make the cost of assessment prohibitive, get reduced benefit or none at all.
I reckon it'd be a great vote-winner...
Let us not pretend that there are no supports for the low paid e.g. Social and Affordable Housing, Medical Cards, FIS and the Community Welfare Officer among other things. The crux of the argument is that the State should not use the tax system to penalise single-income families. In any case the Labour/FG proposals seem like window dressing; they have no real issue with individualisation in principle, they are just offering to halt it's creep. If the snippet I read in the Indo is true, that FG also want to abolish the Early Childcare Supplement, then many single-income families will be in a net worse position. Sometimes I wonder about the opposition, whenever they have FF at point-blank range they still manage to shoot themselves in the foot.The simple reality is that if Labour wanted to help families with children, they could simply have a policy of increasing child benefit. Unfortunately this would benefit people earning average industrial wages or worse the "lumpen proletariat" working in low paid employment.
Methinks that the middle-income people are those whom pay most of the income tax in this country, with single-income middle-income paying more again.. . Labour party is pandering to middle income floating voters.
seems wrong."but I still think that even if she earned €34,000 that it should be at the 20% rate. as thats the rate a single person would be taxed at earning up to €43,000. so why discriminate against a married person?"
Apologies; you are correct Ashambles and I am totally wrong. Two earning effectively have twice the single limit. invididualisation in effect doubles the single persons COP for a married couple both working.(provided that the lesser earner can reach the €25,000 limit) I didn't realise this was the case and I am happy to stand corrected.
cheers
I deal in lofty principles, not practicalities.
Surely the Government should be able to work out something? It can't be all that much more costly or complicated than, say, devising a system of electronic voting. (Whoops! Forgot...)
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