Conor Lenihan
Question:189 Mr. C. Lenihan asked the Minister for Finance the plans, if any, he has to make expenses incurred by the unemployed, while seeking work, tax deductible; and, if so, the way in which he would implement this. [7301/98]
Written Answers. - Tax Relief.
Employment-friendly policies were central to the budget and will remain so over the life of this Government.
I am not averse to being creative in introducing measures aimed at helping the long-term unemployed as was borne out by my announcement in the budget of a new initiative in this area. However, I believe that allowing expenses incurred by the unemployed while seeking work to be tax deductible would be of little assistance because the vast majority of unemployed persons have either no taxable income or pay minimal amounts of tax from which they could offset expenses. I believe that existing labour market policies which have been strengthened by the introduction of my new initiative to help the long-term unemployed in addition to other income tax measures announced in the budget represent sufficient incentivisation for unemployed people to take up work and consequently I have no plans to introduce the specific proposal referred to in the question.