The publication of the 2011 Finance Bill confirms the income tax increases announced in the budget and the introduction of the Universal Social Charge on people on incomes of over €4,000.

These tax hikes take effect immediately low and middle income earners, including pensioners in private and public service pension schemes.

However, it is clear from sections 22 and 23 of today’s Finance Bill, which deal with the promised reforms of tax expenditures and property incentives, that vested interests have been able to bend the ear of government Ministers to postpone additional contributions from this sector.

The Minister has in effect decided to postpone the changes announced in the budget to the property based tax reliefs.

He is arranging for the preparation and publication of an impact assessment on the changes and for a commencement order which can only take effect 60 days after its publication. In effect, the Minister has kicked the can down the road for another year.

In the budget arithmetic, and in commitments made to the IMF, the Minister made provision for the phasing out of property reliefs to make a contribution of €60m in 2011.

In the IMF agreement, the government committed to contributions from taxation of various kinds on €1,400m and gave us to understand that if these targets were not met, other taxes would be levied.

If the Minister has in fact abandoned the €60m contribution from property based reliefs, he must come clean on whether he intends ordinary workers to make up the shortfall.

It is important to remember that Brian Cowen, when Minister for Finance, in the 2007 budget promised to close stamp duty loopholes which benefitted developers to the tune of over €200m a year.

Having promised to close the developers’ stamp duty loophole, the Minister backed down by carrying out an economic impact assessment which, surprise, surprise, advised not to close the loophole after all so that the commencement order was never signed.

Similarly, in 2005/6, he proposed a small 1% stamp duty on contracts for difference which was subsequently withdrawn when vested interests objected. This was the mechanism that then went on to become so attractive to people gambling on shares in Anglo Irish Bank.

Some two years ago, Brian Lenihan promised a parking levy on civil servants, which has never come to fruition.

So, it seems that the Fianna Fáil model of announcing reform, commissioning a study and then abandoning the reform seems destined to be repeated for property based tax reliefs.