Fine Gael on Less Tax – shorter recession

Less waste, lower taxes, stronger growth under FG – Noonan

Fine Gael publishes fiscal strategy for 2012-2014

Fine Gael’s 5 Point Plan to Get Ireland Working can get the deficit back to 3% by 2014 without increasing income tax according to Fine Gael’s Finance Spokesman Michael Noonan.

“Our plan is the best way to get Ireland working again. Fine Gael is the only Party which is targeting 73% of the reduction through savings in spending, and just 27% on new taxation measures. Compare this to Fianna Fáil, which has based 38% of its reduction on tax hikes, and the Labour Party’s plan for tax hikes representing 50% of savings.

“Fine Gael’s strategy is based on three pillars: less waste, lower taxes and stronger growth. We will cap taxpayers’ exposure to further banking losses and fix the remaining deficit in a way that doesn’t destroy jobs. Our fiscal plan includes the following details:

• Fine Gael will cut wasteful spending. That is why total cumulative spending commitments by Fine Gael are €5 billion less than Labour for 2012-14;

• By 2016 Fine Gael will only borrow for the purpose of investment and job creation. Unlike other parties, we have a costed plan to offset reductions in tax-financed public investment with an extra €7 billion in commercially financed investment in energy, water and broadband;

• Our plan for extra savings from back-office rationalisation will free up extra resources to maintain frontline services, avoid further cuts in core public servant pay; avoid the tax increases proposed by other parties; finance a 1.5% cut in VAT on labour-intensive services and halve employers’ PRSI on low-paid workers, to add 100,000 jobs by 2016;

• We accept the need to cut spending on non-priority programmes, and deliver big cuts in the cost of government procurement.

“No country ever taxed its way back to recovery and Ireland will be no different. Fine Gael is the only Party which won’t have to raise income taxes unlike other parties. In contrast, Labour plans to increase the top rate of tax to 55%, introduce an annual recurring property tax on the family home and increase income taxes by €2,500 per year for families that have put their savings into investment properties (based on a €300,000 mortgage). On the other hand, Fianna Fáil’s plans to cut tax credits, pension reliefs and the standard rate band will impose another €1,470, or €28 a week, on a single-earner family earning €50,000 by 2014.

“This fiscal plan is a vital part of the recovery. It is realistic, honest and transparent. It will re-start our economy, it is the basis of restoring confidence in our nation and it is the first step in getting Ireland working again.”