On tax justice, some 380,000 PAYE workers were exempt from tax when this Government took office in 1997. Today, as a result of seven successful budgets introduced by my predecessor, 622,000 taxpayers are exempt from tax. For the 240,000 taxpayers who previously paid tax under the rainbow coalition of previous Governments, that is defined as tax justice.
It is misleading to say that half of those paying tax do so at the top rate. The number of income earners exempt from tax has grown steadily since 1997 from 380,400 to 622,800. That represents an increase of well over 60%. A 60% increase in the number of people not paying tax has occurred under this Administration, yet I am asked to ensure more tax justice. Results from the very significant increases in the personal and employer tax credits, formerly allowances, in successive budgets have also brought about greater tax justice because, as the Deputy will be aware, they favour the lower paid. That was not the case under the previous system.
The problem with using the term "taxpayers" rather than "income earners" is that the more people we exempt from tax using the personal and-or employee credits, the higher the percentage of taxpayers in the top rate even if there is no increase in numbers. The more people we take out of the tax net, the fewer people who pay tax, yet Members opposite use statistics to suggest more people are paying tax at the higher rate in statistical percentage terms even though there has been no increase in numbers. While I would not suggest it is mischievous on the Deputy's part, it is a misleading and a partisan use of statistics. If fewer people pay tax — to the tune of 240,000 — than was the case when this Government came into office, that is real tax justice. When one brings about change under the credit system introduced by my predecessor rather than the allowance system, that too is greater tax justice because it ensures more people pay tax at the standard rate.
The role of this Government will be to ensure that those on low pay receive the best benefits. I will not accept the contention that this Government has not been according tax justice to more taxpayers. Not alone has it done so, it has reduced rates. The net tax take from those on the average industrial wage, including PAYE, PRSI and the health levy, has been reduced by 10% from 27% under the rainbow coalition to 17% under this Administration.