Trevor Sargent
Ceist:72 Mr. Sargent asked the Minister for Finance his views on the Government's White Paper on Basic Income. [25583/02]
Written Answers. - Basic Income Report.
The Government's Green Paper on Basic Income was published on foot of a commitment in the 1997 Government programme, An Action Programme for the Millennium. The Green Paper is based on work undertaken for the steering group on basic income in the period 1999 to 2000, arising from a commitment in Partnership 2000 for inclusion, employment and competitiveness. The specific proposal studied would involve the replacement of the existing social welfare and income tax systems with a flat universal payment to all adults (with a smaller amount for each child), a new social solidarity fund to compensate people on low incomes who would lose out from the abolition of existing social welfare payments and a flat rate of approximately 48% tax on all income – i.e. no tax credits – other than on the basic income payment. The purpose of the Green Paper is to bring the issues involved to the attention of the wider community and to encourage debate. I welcome the publication of the Green Paper and I am confident that it will help to clarify the complex issues involved.