asked the Minister for Finance if he will consider allowing claims for income tax relief to parents of university students in view of the expenses involved.
Ceisteanna—Questions. Oral Answers. - Income Tax Relief.
46.
In the normal way a parent's eligibility for a child allowance of up to £170 a year under the Income Tax Acts ceases when the child reaches the age of 16 years. If, however, after the age of 16, the child is in receipt of full-time instruction at school or university the allowance continues to be given for so long as the child remains in receipt of full-time instruction. Any question of increasing the allowance is a budgetary matter to be considered in conjunction with various other claims for income tax relief.
47.
(Dublin Central) asked the Minister for Finance if he will consider exempting overtime earnings from income tax.
The answer is in the negative.
(Dublin Central): Is the Minister aware that many employers are finding it impossible to get employees to work overtime? The chief complaint is that they will not pay income tax on overtime. I had hoped that the Minister in his review would take this into consideration.
I think the Deputy would accept that a cardinal principle of equitable income tax is that it should be neutral in its incidence and must therefore apply equally to all incomes irrespective of the hours during which the income may be earned. If the Deputy's suggestion were to be entertained I believe it would have very undesirable economic and social effects.
(Dublin Central): I would not accept the Minister's statement because I believe that if income tax on overtime were relieved you would have greater production. It has been brought to my attention that manufacturers cannot meet export orders due to the fact that people will not work overtime. Further, I believe the money accruing to the wage earner——
The Deputy is making a statement. I want to help the Deputy, but he cannot make a statement.
There is the contrary argument, which I am sure the Deputy will understand. It is that were income not subject to tax during certain periods of work it would be a disincentive to people to produce during other hours of work.
In view of the cogent argument the Minister has put forward as to why overtime earnings should not be exempt from income tax, would he care to explain to the House why that principle should not be applied to differential rents?
I am dealing here with the question of income tax. Other considerations can obtain in relation to other payments.