Sinn Féin would introduce “progressive tax measures” including a “solidarity tax” on incomes above €140,000 as part of its alternative budget proposal.
The party would spend €5.3 billion more than the Government plans to in Budget 2021, arguing that “now is not the time for fiscal conservatism,” according to the Irish Times.
The extra spending would be partially covered by the introduction of the proposed tax measures worth €1.5 billion, such as the “solidarity tax” which would introduce a three per cent levy next year on individual incomes above €140,000, rising to five per cent in 2022.
Tax credits would also be removed on a tapered basis from individual incomes above €100,000, while a new rate of employers’ PRSI on incomes above €100,000 would be introduced, starting at 12.05 per cent next year.
“Now is not the time for fiscal conservatism, which will only increase unemployment, lengthen the recession and damage the ability of our economy to recover quickly,” Sinn Féin says in the document.
Pandemic unemployment payment
“Sinn Féin’s proposals would be funded through sustainable borrowing and the introduction of progressive tax measures that contribute towards our national recovery as we build a better future, building on the solidarity that has been shown in our families and communities,” it says.
Sinn Féin says if it were in Government, it would reverse cuts to the pandemic unemployment payment and introduce a “wage support scheme” costing €1.5 billion.
The party has also proposed a once-off reduction in Vat – from 13.5 per cent to 9 per cent – for sectors affected by Covid-19 such as hospitality and a commercial rates waiver until June.
The party said it would also further invest in healthcare and housing, with an additional €449.7 million invested in additional hospital beds and intensive care units, €150 million in new healthcare staff and €1.5 billion in social and affordable housing.