asked the Minister for Finance whether in view of the steadily depreciating value of money he will consider increasing the personal and dependant relative allowances for income tax assessment.
Ceisteanna—Questions. Oral Answers. - Increased Income Tax Allowances.
72.
Alterations in the income tax personal allowances are primarily budgetary matters and as such are considered—together with other budgetary matters—at the appropriate time.
When were the personal rates established?
I think the idea of personal allowances goes back to the commencement of income tax itself. They have, of course, been changed from time to time.
They have not been changed.
Some of them were changed in the last Budget.
Little or no change was made in the last Budget. Will the Minister not agree that having regard to the steady depreciation in the value of money, in his next Budget it is imperative for him to raise the rates and raise them drastically? Will the Minister not agree that is it unfair to ask a single man earning more than £6 weekly to make a contribution towards the State by way of income tax, and it is equally unfair for a married worker earning more than £10 to be liable for income tax, having regard to present rates? It is about time a change was made and give the small fellow a chance to save up to buy a house, to get married or to do numerous things.
The Deputy is making a speech.
I am not sure if the Deputy is aware how costly any change in these rates would be.
I am aware of that.
For instance, if we were to raise the single allowance and the widow's allowance by £10, and that is not a great deal, it would cost £1,400,000 in a full year, and if Deputy Murphy wants to urge me to do that, I would like him, at the same time, to suggest from what source I should get money to do it.
I am glad to answer the Minister's question for a change. He could get the money as Minister for Finance and Minister of the Establishment by cutting down on a great deal of wasteful expenditure.
Well done!Detail it for me, please.
I detailed some of it on the different Estimates here in the Dáil during the current year, if the Minister reads my contributions.
Point to one specific thing.
(Cavan): Could the Minister say when the present personal allowances, as distinct from children's allowances, were fixed?
I am afraid I would not be able to say.
(Cavan): Would the Minister agree that it was several years ago?
Yes, I agree.
(Cavan): Will the Minister not agree that the value of money has changed very considerably since then and that, in effect, means that income tax is being increased year after year?
The Deputy, of course, is guilty of an economic fallacy. The fact that the value of money declines also means that the burden of tax payable declines in equal measure.
That is hardly sustainable.
Can it be assumed that the Minister will take note of this question when he goes about preparing his Budget statement?
I gave very earnest consideration to this whole question of personal allowances on the occasion of the last Budget, and in fact as Deputies know increased some.
Not the personal ones.