A DONEGAL senator has
slated Finance Minister Brian Lenihan's first budget
saying the Government has "failed the leadership
test".
Senator Pearse Doherty said Sinn Féin wanted to see
the beginning of a three year plan to get the
economy back on track.
"The Government has not delivered such a Budget. The
Minister had committed to the building of a strong
economy and to protect the most vulnerable in
society. He has done neither. There are no job
creation proposals and vulnerable families will be
worst hit by hikes in direct and indirect taxation,"
said the Sinn Féin senator.
He also criticsed the new 1% income levy, VAT
increases and fuel tax saying they would hit hardest
working families and small businesses.
While he welcomed the widening of the PAYE tax
bands, betting tax and DIRT rises, which Sinn Féin
had proposed, he described as "disgraceful" the
income levy and VAT increases.
"The proposed income levy is regressive. While it is
positive that people on over €100,000 will pay more
at 2%, the fact that all those on under this figure
will pay at the same level means it
disproportionately hits those on low incomes," he
said.
“The increase of the 21% VAT rate by half a percent
is also regressive. It will hit low income families
and does nothing to reverse the State’s dependence
on consumption taxes, one of the key contributors to
the current public finance difficulties." Meanwhile,
he claimed the pension and social welfare rises of
€7 and €6.50, respectively, would do nothing to ease
the burden for cash-strapped families. "We called
for increases of €15 for each social welfare
payment. €6.50 per week will disappear into the cost
of living before it is even paid. €7 per week for
pensions is a slap in the face to the generation
which built this economy." |
