The People Before Profit Alliance’s alternative budget calls for abolition of water & property taxes, lifting the USC burden, the reversal of unfair cuts, and major public investment in social housing, services and infrastructure.
PBPA says big business, the very wealthy and top earners must make greater tax contribution to fund meaningful recovery.
The People Before Profit Alliance (PBPA) alternative budget entitled: Tax Justice, Fairness & Meaningful Recovery, proposes the abolition of water charges, property tax and a significant reduction of USC for low and middle income earners. It also proposes a reversal of a whole range of recent cuts in social welfare and housing supports, a major boost in funding to health, education and local government and a major public investment programme in the area of social housing, water infrastructure, forestry and district energy projects.
PBPA proposes to finance the abolition of water and property taxes, the reversal of cuts and increased investment from a number of sources including: a minimum corporate tax rate, a Financial Transactions Tax, a wealth tax and four new bands of taxation for earnings in excess of 100,000 per year.
Summary of Measures:*
- Establish a minimum effective corporate tax rate of 12.5% on Total Profits – this will raise €3.5 billion;
- Establish a new nominal rate of 15% – this will raise €500 million;
- Introduce the FTT to raise €320 million;
- Establish four new tax bands on earning over €100,000 per year to raise €922 million:
· 50% on earnings between 100,000 and 140,00;
· 55% on earnings between 140,000 and 180,000;
· 60% on earnings between 180,000 and 250,000;
· 65% on all earnings over 250,000;
- Abolish the USC for those earning less than €30,000 – this will cost €950 million;
- A new 2.5% rate for those earning between €30,000 and €60,000;
- A new 5% rate for those earning between €60,000 and €100,000;
- A new 7.5% rate for those earning over €100,000;
- Establish an annual wealth tax of 2% on assets (excluding the family home or family farm) over €1 million to raise €1 billion;
- Establish a national database on the distribution and ownership of financial and property assets;
- Abolish the Local Property Tax;
- Abolish the Water Tax;
- Abolish the discriminatory JSA rates for under 26 year olds;
- Restore the Telephone Allowance;
- Reversal of €50 cut to Back to School Clothing & Footwear Allowance million;
- Increase Basic Social Welfare Rates by €10 per week;
- Reversal of cuts to One Parent Family Payment including reduction of income disregard;
- Restore Back to Education Allowance;
- Reverse cuts to Child Benefit;
- Restoration of the Christmas Bonus;
- A staffing plan in both primary and post-primary education to ensure reductions in class sizes over the coming years;
- A reversal of the 15% cut in children’s special education resource teaching hours and supports since 2010 which has seen an average loss per school of approximately 17 hours per week;
- A reversal of the last three years increase in the current student contribution (registration fee) – €49.5 million;
- A reversal of the reductions in 3rd level and postgraduate grant;
- Restore €160 million to local government;
- Additional funds to community welfare to allow flexibility in allocation of rent allowance;
- Establish a three-year emergency public housing programme of €4.5 billion – 2015 €2 billion, 2016 €1.5 billion, 2017 €1 billion;
- Boost the water infrastructure repair programme;
- Establish a household water conservation grant fund.
*For full details on costs and revenue raising measures click here to download our Alternative Budget 2014.