In the last resolution we were talking about VAT and the fact that despite all the protestations by the Minister, this budget will take £122 million more in VAT from the community during 1985. We now turn to the income tax side. We have already pointed out that the Minister will take £164 million more in income tax in 1985. That means that income tax yields will rise by 8.4 per cent compared with the 1984 outturn. In other words, despite all the conjuring tricks and sleight of hand engaged in by the Minister, unscrupulously and dishonestly, income tax payers will pay 8.4 per cent more this year.
Many promises were made about indexation but they have not been kept. The concessions given in income tax are nowhere near what indexation would involve. That is another dishonoured promise. When taxpayers analyse their position they will see that the vast majority are worse off in spite of the very clever presentation and selling which has been done this afternoon and evening.
By a strange coincidence, if the Minister had abolished the 1 per cent income levy, he would have come very near indexation, thereby compensating for the gap between what he had done and indexation. We are opposing the extension of this levy. It was imposed originally as a temporary measure for one year but it has now been extended. It is a very insensitive mechanism without any regard to the capacity of the taxpayer to pay or without any regard to the circumstances of the taxpayer. It is undesirable as a tax because of its flat rate quality. We opposed it when it was first introduced and we have no hesitation in oposing its extension in this budget especially as taxpayers, particularly the PAYE sector, will be paying £164 million more during 1985 than they did last year, in spite of the attempts of the Minister to mislead them into thinking that they will be better off. It would have been a reasonable concession to that hard pressed section to let this levy lapse. When it was introduced it was ostensibly to meet a temporary budgetary situation but the Minister has extended it once and is now extending it for the second time. It will bring in approximately £41 million, in other words it will take that amount from the taxpayer. The sum of £41 million will be extracted on a flat rate basis without any regard to ability to pay.
The reimposition of this levy is in line with the general approach adopted by the Minister in the budget. This levy, the youth employment levy, income tax and VAT will impose a very considerable burden on the average family and household. When it is all added up and when this levy is added to all the other items in the budget, it is quite clear that the whole balance of the budget is in favour of the better off section of the community in relation to the poor and weaker sections.
It is very difficult to find anything in the budget which will ultimately rebound to the benefit of the lower income section. The budget is anti-family and will do nothing to improve the hard pressed lower income section. These levies were originally introduced on some vague notion that they would be used to help people to find employment but that has been completely abandoned. There is no attempt being made now even to pretend that these levies will do anything to promote employment. There is nothing anywhere in the budget which will contribute to the creation of one single job or which will make any contribution whatsoever towards the appalling problem of mass unemployment facing us at present. There are 225,000 people unemployed and, as Deputy O'Kennedy pointed out, despite the Taoiseach's constant protestations of honesty and integrity in regard to figures, there is a grave doubt as to whether the budget provides fully for the levels of unemployment which will obtain during the coming year.
I will conclude by reiterating that this levy is just a further imposition on one particular section of the community who are already burdened in the budget with £164 million extra directly and with £122 million extra indirectly in the form of increases in VAT.
