Vol. 413 No. 1
65 Mr. Moynihan asked the Minister for Finance if he will accept the necessity of granting a substantial increase in the dependent relative income tax allowance to individuals and/or couples who are caring for incapacitated relatives, where, because of income, such people are not eligible for the carer's allowance from the Department of Social Welfare.
I do not accept that there is a necessary connection between the level of the dependent relative tax allowance and eligibility for the carer's allowance from the Department of Social Welfare. In any event, I would point out that taxpayers entitled to the dependent relative allowance are also subject to the usual conditions, entitled to claim medical insurance relief and medical expenses relief in respect of the dependent relative, and to claim mortgage interest relief on a loan obtained for the purchase or improvement of a dwelling for use rentfree by such relative. In addition, the focus of tax policy is to conserve and widen the tax base and reduce tax rates: on foot of this, in recent years the top and standard tax rates have been reduced by 6 per cent in each case, the standard band has been extended by over 40 per cent, the personal and PAYE allowances have been increased, and special provision has been made for the low-paid via the exemption limits and the child addition to them. These improvements have been of benefit to taxpayers generally, including those claiming the dependent relative allowance.
