While Labour have insisted that they will not impose additional income taxes on those earning less than €100000 per annum, the party are suggesting a raft of additional taxes which will negatively impact on low-paid family income, claims independent candidate in Donegal NE Ryan Stewart.
An increase in the VAT rate of 1% and an increase in the carbon tax will mean that the price of goods will rise, severely impacting traders in the border areas, completely negating the UK VAT increase and pushing shoppers back across the border, said Stewart.
He claimed today: “By reducing the retail and production cost of goods, cutting VAT by 2%, border areas will find it easier to compete and retain business which would otherwise go north. Increasing a consumption tax means people spend the same but get less in return.
“The carbon tax itself does not work. The Fianna Fail-led government announced a 7% cut in CO2 emissions following the introduction of the carbon tax in 2009, however the economy contracted by 10% in the same period – less economic activity means fewer emissions due to lack of production activity.
“Let’s call a spade a spade – the carbon tax should be done away with, and current taxes reallocated as a fuel tax, and by doing so, allows the government to specifically target areas for tax increase, but not increasing carbon tax to €25 per tonne as Labour has suggested.
“Thanks to two of the harshest winters in years, the carbon tax means people cannot afford to heat their homes. The carbon tax has increased the cost of heating oil, electricity, gas, coal, fuel and the carbon tax also impacts severely on transport, and agriculture, increasing costs to farmers, increasing our agri-food production costs, and potentially damaging a thriving export market.
“Labour’s proposal for a site valuation tax is equally foolish at a time when mortgage holders are unable to keep up with current payments. Labour have rightly accused Fianna Fail of stoking the property bubble, but these policies will ultimately remove more money from already hard pressed families’ incomes, and will on inflate the personal debt bubble families are in.
“There is no logic to their approach, and disguising these taxes by publicly stating that they are leaving income tax alone, will fool nobody.”