Main Points of Joint Labour-FG Economic Policy Statement
April 20, 2007
Labour and Fine Gael have agreed a number of income tax measures that bolster the incomes of hard working families
that have suffered from the "rip off" experience and that support the life choices of all families, including parents and other carers, in achieving their own preferred balance between paid work and unpaid care.
1.A 2-point cut in the standard rate of tax from 20% to 18%
2.Indexation of personal credits and bands to earnings and a further €5,000 increase in the point where 1-income married couples hit the top rate of tax
3.An increase in the home carers' credit to the level of the PAYE credit
A Fairer Stamp Duty Regime
We will introduce a fairer system of stamp duty that helps make housing for all families more affordable. Specifically:
- We will abolish stamp duty for first time buyers up to €450,000;
- We will restructure stamp duty for others buyers as follows:
o No stamp duty up to €100,000
o On the next €350,000 a 5% rate will apply
o On the balance a 9% rate will apply
Our proposals will significantly cut stamp duty for nearly all families that want to trade up and down as their life and work circumstances change.
It is the role of Government to help families buy homes, not to get in their way. The present Stamp Duty regime has put young families under huge pressure. Fianna Fail has presided over this unfair tax regime for the last decade and is resolutely opposed to its reform. In contrast reform of Stamp Duty will be a priority for Fine Gael and Labour in Government.
The timing of such a major change in taxation has to be decided by Government based on conditions in the market for those buying and selling homes and on the budgetary conditions.
On election to Government, Fine Gael and Labour will review these conditions and assess the best time to implement this priority as a single measure.
A Greener Tax System
One of the most important challenges for any community or generation is to hand on the environment to our children in a better condition than we received it. We will rebalance Vehicle Registration Tax to favour lower-emission vehicles. We will also abolish Excise Duty on biofuels produced from renewable energy crops.
Budgeting for Growth and Stability
Budgetary policy under a Fine Gael - Labour Government will rest on five pillars:
1. Fiscal Prudence and Economic Stability. All commitments are subject to the over-riding commitment to adhere to the EU Growth and Stability Pact.
2. Higher Capital Spending. We will increase capital spending to the levels set out in the National Development Plan 2007-13 and will invest 1% of GNP in the National Pension Reserve (NPRF) annually.
3. Targeted Tax Reforms. Our proposals have been costed at €3.4 billion in 2007 terms (€2.4 billion net), equating to an average annual tax relief package of €680 million each year in 2007 prices.
4. Better Public Services. On top of existing commitments across a range of public services, we will fund additional day-to-day spending on health and policing services, as agreed in our joint policies on health and policing. When delivered in full, these will cost an additional €1.6 billion in 2007 prices.
5. Better Value for Money. We will enhance Oireachtas scrutiny of expenditure, and civil service capacity in expenditure management.
that have suffered from the "rip off" experience and that support the life choices of all families, including parents and other carers, in achieving their own preferred balance between paid work and unpaid care.
1.A 2-point cut in the standard rate of tax from 20% to 18%
2.Indexation of personal credits and bands to earnings and a further €5,000 increase in the point where 1-income married couples hit the top rate of tax
3.An increase in the home carers' credit to the level of the PAYE credit
A Fairer Stamp Duty Regime
We will introduce a fairer system of stamp duty that helps make housing for all families more affordable. Specifically:
- We will abolish stamp duty for first time buyers up to €450,000;
- We will restructure stamp duty for others buyers as follows:
o No stamp duty up to €100,000
o On the next €350,000 a 5% rate will apply
o On the balance a 9% rate will apply
Our proposals will significantly cut stamp duty for nearly all families that want to trade up and down as their life and work circumstances change.
It is the role of Government to help families buy homes, not to get in their way. The present Stamp Duty regime has put young families under huge pressure. Fianna Fail has presided over this unfair tax regime for the last decade and is resolutely opposed to its reform. In contrast reform of Stamp Duty will be a priority for Fine Gael and Labour in Government.
The timing of such a major change in taxation has to be decided by Government based on conditions in the market for those buying and selling homes and on the budgetary conditions.
On election to Government, Fine Gael and Labour will review these conditions and assess the best time to implement this priority as a single measure.
A Greener Tax System
One of the most important challenges for any community or generation is to hand on the environment to our children in a better condition than we received it. We will rebalance Vehicle Registration Tax to favour lower-emission vehicles. We will also abolish Excise Duty on biofuels produced from renewable energy crops.
Budgeting for Growth and Stability
Budgetary policy under a Fine Gael - Labour Government will rest on five pillars:
1. Fiscal Prudence and Economic Stability. All commitments are subject to the over-riding commitment to adhere to the EU Growth and Stability Pact.
2. Higher Capital Spending. We will increase capital spending to the levels set out in the National Development Plan 2007-13 and will invest 1% of GNP in the National Pension Reserve (NPRF) annually.
3. Targeted Tax Reforms. Our proposals have been costed at €3.4 billion in 2007 terms (€2.4 billion net), equating to an average annual tax relief package of €680 million each year in 2007 prices.
4. Better Public Services. On top of existing commitments across a range of public services, we will fund additional day-to-day spending on health and policing services, as agreed in our joint policies on health and policing. When delivered in full, these will cost an additional €1.6 billion in 2007 prices.
5. Better Value for Money. We will enhance Oireachtas scrutiny of expenditure, and civil service capacity in expenditure management.