29 Jan 2020 | 11.11 am

Sinn Féin is calling for a major increase in income tax for high earners and a number of business taxation increases in its general election manifesto.

The party is expected to win around 23 of the 160 sets in the next Dáil and there is little chance of its loony-left proposals being implemented.

The manifesto states: “Our tax and spending plans will deliver on the priorities of workers and families. It will ensure that our tax base is resilient and our economy secure. This will be achieved through a sustainable and progressive fiscal policy.”

Sinn Féin’s bonkers income tax proposals come against a background of Ireland already having the most ‘progressive’ tax system of any of the 21 EU member states that are members of the OECD.

According to the Irish Tax Institute, the top quartile of earners in Ireland pays more than 80% of the total income tax and USC; the top 1% (incomes over €200,000) pay over a quarter of income tax and USC. A person earning €100,000 already pays twelve times more personal tax than someone earning €25,000.

Successive budgets in recent years have removed an increasing number of income earners from the USC net. In 2015, 23% of the personal tax take came from the USC; by 2018, that number had fallen to 18%. In 2011, just 12% were exempted from paying the charge. Eight years later, that number has more than doubled to 28%.

The ITI estimates that the tax system already exempts more than three quarters of a million out of a total of 2.7 million income earners. The Institute’s view is that this situation is not sustainable.

SINN FÉIN TAX REVENUE PROPOSALS

Introduce a 5% high income levy on individual incomes above €140,000

Extra annual tax revenue expectation: €452 million

Taper out tax credits on individual incomes over €100,000 to €140,000

€260 million

Introduce a wealth tax on the portion of net wealth held over €1 million with a number of exemptions including farms

€89 million

Increase Capital Acquisition Tax by 3% to rate of 36%

€45 million

Reduce the pensions earnings limit and the Standard Fund Threshold to €1.2 million

€494 million

Introduce a 15.75% rate of employer’s PRSI on portion of salaries over €100,000

€532 million

Tax intangible assets onshored by multinationals

€722 million

Increase Stamp Duty on commercial property to 12.5%

€440 million

Abolish the Special Assignee Relief Programme

€23 million

End the corporation tax break for the banks

€175 million

Increase income from the annual bank levy

€50 million

Increase the Dividend Withholding Tax on REITs and IREFs to 33%

€20 million

Increase the Vacant Site Levy to 15%

€107 million

Introduce a 2nd home charge at a rate of €400

€104 million

Scrap Help-to-Buy scheme

€102 million

SINN FÉIN TAX RELIEF PROPOSALS

Abolish USC on the first €30,000 earned

Annual tax cost expectation: €1,219 million

Abolish Local Property Tax

€485 million

Increase Earned Income Credit to €1,650

€35 million

1 month rent relief

€301 million

(“A three-year refundable tax credit for existing and new tenancies that would put a month’s rent back in every renter’s pocket”)

Retain mortgage interest relief

€35 million

Restore tax credit for trade union membership

€40 million

End motor tax surcharge for quarterly and 6-month payments

€43 million

Abolish 3% stamp duty on non-life insurance policies

€160 million

Abolish 2% levy on non-life insurance policies ~

€69 million

Photo: Sinn Féin leader Mary Lou McDonald. (Pix: Rollingnews.ie)

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