Dáil Éireann debate -
Tuesday, 8 May 1956

Vol. 157 No. 1

Financial Resolutions. - Resolution No. 1—Income tax and Sur-tax.

Minister for Finance (Mr. Sweetman)

I move:—

(1) That income-tax shall be charged for the year beginning on the 6th day of April, 1956, at the rate of 7/6 in the £.

(2) That sur-tax for the year beginning on the 6th day of April, 1956, shall be charged in respect of the income of any individual the total of which from all sources exceeds £1,500 and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1955.

(3) That the several statutory and other provisions which were in force on the 5th day of April, 1956, in relation to income tax and sur-tax shall have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1956.

(4) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

Mr. MacEntee

I want to make our position clear in regard to this Resolution which is related to income-tax and surtax and which proposes that income-tax will continue to be charged for the year beginning on the 6th April at the rate of 7/6 in the £. If we are letting the Resolution pass without a division it is not because we regard the rate as moderate. On the contrary, we regard it as wholly excessive. This is a tax in addition to all the other taxes the taxpayer will have to bear under this Budget. It presses most heavily upon those who work and earn. However, in the circumstances, we prefer that the Budget should be balanced rather than that we should reduce taxation and since, as my colleague Deputy Lemass has reminded the House, the Government has not seen fit to tackle its task of balancing the Budget in the correct way, by reducing expenditure so that a consequent reduction in taxation would be justified—because we prefer a balanced to an unbalanced Budget and because we prefer to maintain taxation rather than to reduce it—we are permitting this Resolution to pass without a division.

Resolution put and agreed to.