Noel Ahern
Question:99 Mr. N. Ahern asked the Minister for Social Welfare if he has considered the report on basic income submitted over a year ago by CORI; if so, his plans in this regard; and if he will make a statement on the matter. [20228/96]
Written Answers. - Basic Income Report.
The question of basic income was examined in some detail by the expert working group on the integration of the tax and social welfare systems, which reported earlier this year. The expert group examined a number of options for full or partial basic income.
The main conclusions which the expert group reached on the CORI proposal were: the scheme would greatly simplify the tax and social welfare systems; many people would face substantial increases or decreases in net income — some of those facing a drop in net income are already on low incomes; some aspects of abolition of all tax allowances could cause problems — in particular, the taxation proposals could have adverse implications for occupational pensions; the scheme would involve substantial increases in marginal tax rates; it was unlikely to have a significant positive effect on employment; the high marginal tax rates might lead to more people working in the black economy. The group's overall conclusion was that the high tax rate associated with the scheme made its effect on employment uncertain; for this reason the group recommended against the scheme.
Whether basic income becomes feasible in the future will depend on relative movements of a large number of variables, such as the desired level of the basic income, the tax rate that may be imposed, the dependence ratio in the population, the relative level of employment and unemployment, and any changes in social welfare systems and structures in other EU countries.