asked the Minister for Finance whether a widow's contributory pension is not taxable, in view of the fact that it is unearned income; and whether he will arrange with the Revenue Commissioners to disregard such pension payable to widows who have taken up employment when their tax free allowances are being determined.
Ceisteanna—Questions. Oral Answers. - Tax Free Allowance.
8.
In reply to the first part of the Deputy's question I would like to point out that the question whether or not income is unearned is not a factor which determines the chargeability of the income to tax. Under existing law a widow's contributory pension payable under the Social Welfare Acts is chargeable to income tax as earned income but in the case of a widow with no other income a liability to tax does not, of course, arise.
With regard to the second part of the Deputy's question the answer is in the negative.
9.
andMr. S. Barrett asked the Minister for Finance if he will increase the minimum tax-free allowance on income to £500.
The Deputies, who presumably have in mind an increase in the income tax personal allowance, will appreciate that alterations in this regard are primarily budgetary matters which will be taken into account together with other considerations at the appropriate time.
Is it not correct that the four Deputies who asked the last three questions voted against a motion proposed by this Party on this subject last night in this House?
(Cavan): Will the Minister for Finance bear in mind next year the fact that last year and the year before surtax payers got relief and on that account, if on no other, the lower grade of income tax payers are now entitled to an increase in their personal allowances?
Surtax payers got relief last year at a certain level to offset difficulties we were having in attracting certain types of people with managerial and technological expertise to this country. It cost about £100,000 at that level, after taking account of increased surtax at other levels.
(Cavan): The same thing happened the year before. It is a disgrace.