Sinn Féin budget plan targets rich

The Sinn Féin party was the first to spell out how they would achieve €5bn in cuts in the forthcoming budget when it launched its 2011 pre-budget submission on Monday. Cavan/Monaghan TD and Dáil leader, Caoimhghín Ó Caoláin outlined a wide range of new taxes for higher earners at the heart of his party’s savings package “There is a Better Way”. In total, the party claims to have identified €5.266bn in savings. Over €4bn or 80% of the savings will be generated from new tax measures with the balance being achieved through public sector cuts largely targeting the salaries of senior employees in the public sector. The proposed new tax measures to hit high earners area: A new 48% tax for high earners; the standardising of all discretionary tax reliefs; an abolition of the PRSI ceiling; and increases in transaction taxes. Sinn Féin has also proposed a cap on the salaries of Ministers and TDs, as well as a cap of €100,000 on all public service salaries. The party has identified a further €500 million in savings through charging fully for the private use of public hospital beds and by reducing the costs of medicines. The document was launched by Deputy Ó Caoláin as Dáil leader at a press conference in Dublin on Monday in the company of party leader Gerry Adams and the party’s finance spokesperson Arthur Morgan. The party once again rejected the 2014 deadline by which the state’s deficit is to be brought back to three per cent of national income. Instead, Sinn Féin stressed that this is a six-year plan based on a prediction for economic growth of three per cent per annum. Gerry Adams insisted that the 2014 target could not be achieved as there were too many cuts in too many areas in too short a timeframe. Stimulus package Deputy Ó Caoláin also pointed out that “economic stimulus is the key to recovery”. He told The Anglo-Celt yesterday (Tuesday) that it is possible to reduce the deficit while protecting people on low to middle incomes and safeguarding vital public services and social welfare. “We are proposing a state-wide investment programme using €7bn transferred from the National Pension Reserve Fund - €2bn would be spent on employment stimulus.” The document does not detail what programmes such a stimulus might target except to say projects would be “labour-intensive”. Such projects could include schools, hospitals, social housing, energy efficiency and public transport. “Making tax credits refundable, restoring the Christmas social welfare bonus and removing the pay levy from those under the tax bracket would assist people on lower incomes and increase their disposable income at a time when more consumer spending is sorely needed. This is a package aimed at individuals and families on low to middle incomes,” added Deputy Ó Caoláin. Jobs crisis Deputy Ó Caoláin also claimed that the party’s proposed employment and financial stimulus package would create an estimated 160,000 jobs over the medium term and save countless other jobs. • The full Sinn Féin document ‘There is a Better Way’ can be read at www.sinnfein.ie Main proposals TAXES Standardise discretionary tax reliefs: saves €1.1bn 48% income tax for incomes over €100,000: raises €410m Income-linked wealth tax of one per cent on non-farm assets: raises €1bn Abolish PRSI ceiling: raises €119m Increase capital gains tax to 40%: raises €240m Increase DIRT to 30%: raises €123m Increase taxes on second homes to €600: raises €120m CUTS Cap ministerial salaries at €100k Cap TD salaries at €75k €100k maximum salary for public sector and semi-state employees Reduce professional fees by 25% Charge full price for private beds in public hospitals Reduce cost of medicine and overheads in health sector by reducing waste and buying generic drugs