Vol. 448 No. 3
54 Mr. Molloy asked the Minister for Finance if he has received a submission with recommendations for the 1995 Budget from the Justice Commission of the Conference of Religious of Ireland; if so, if he will give an estimate of the increase in current income tax rates that would be required to meet the cost of implementing the proposed unconditional basic income for all payments; and if he will make a statement on the matter. [1876/95]
The proposals in Tackling Poverty, Unemployment and Exclusion submitted to me by the Conference of Religious of Ireland with recommendations for the 1995 budget suggest a partial basic income for all financed by means of a 50 per cent tax rate on all income. This means the abolition of all tax allowances and reliefs. The proposal is based on a paper by Mr. Seán Ward, Towards an adequate income for all, published in 1994.
The Revenue Commissioners have analysed the original proposal in Mr. Ward's paper and have found that the tax rate on all income which would be needed to finance the basic income as described would be between 55 and 59 per cent. The lower figure would apply if the savings outlined on the administration and public expenditure trades offs were realised, the higher one if they were not.
