Tax relief in the October Budget should exceed the amount people will pay in water charges, in order to ease the pressure on low and middle income families.
This is the view of Labour Galway West TD Derek Nolan who said “any flexibility” in Budget 2015 should lead to a reduction in the controversial USC.
“It would have an immediate impact on people’s pay and put a little money back in their pockets,” he said. “However, if this is going straight back out on water charges, the reduction is pointless.”
Hence Dep Nolan’s call that tax relief should exceed the water charges. Given that average charges are set to be at least €240, reliefs would have to be in excess of this figure.
He said that while there has been “much speculation” about changes in the rate of income tax or cuts in the USC, ultimately “the bottom line should be about giving people a break”.
Dep Nolan has written to An Taoiseach Enda Kenny, the Tánaiste Joan Burton, and the Minister for Finance Michael Noonan, urging them to consider his proposal.