Dáil Éireann Debate, Thursday - 18 July 2013
108. Deputy Ciara Conway asked the Minister for Finance his views that the revenue raised by the taxation of social welfare payments should be ring-fenced to protect social welfare payments; and if he will make a statement on the matter. [36077/13]
View answerAs the Deputy will be aware, it is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle, the majority of social welfare payments are reckonable as income for tax purposes. These include long-term payments such as Disablement Benefit, the State Pension, Widows, Invalidity and Blind Pensions, Carers Allowance and the One Parent Family Payment, as well as short term benefits such as Job Seekers Benefit. Treating these payments as income for tax purposes is essentially a matter of equity.
The taxation of these payments form part of the overall receipts of income tax and are paid into the Central Fund. They are therefore available, along with other sources of tax revenue, non-tax revenue and capital receipts as well as the funds sourced from borrowing, to fund overall Exchequer expenditure.
I am not in favour of hypothecating receipts from the taxation of social welfare payments or indeed any other taxes for any particular purpose. All revenues collected by the state should go to the Exchequer.
