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MINISTER FOR FINANCE Michael McGrath said today that he will not be bullied by Fine Gael TDs who are trying to include tax cuts in Budget 2024.
On Monday, Fine Gael junior ministers Jennifer Carroll MacNeill, Martin Heydon and Peter Burke called for the budget to contain tax breaks of up to €1,000 in an opinion piece published by the Irish Independent.
Yesterday, Varadkar told the Dáil that he can “absolutely assure” that there will be a further increase to the the state pension in Budget 2024.
Speaking to reporters today, the Fianna Fáil TD was asked if he was being “bullied” by Fine Gael.
“Certainly not,” McGrath said.
“Anybody who knows me well enough will know that I can be as tough as anybody else when it comes to negotiations. I will always be conciliatory and polite, but I can be as firm as I need to be and I will be.
“I will be designing the tax package and it will be done following close consultation with all of our colleagues across government and will be finalised in the coming months.”
McGrath added that the proposed €1,000 tax cut for full-time workers on an average wage of €52,000 would cost €1.5 billion.
Budget 2024 will be announced in October of this year and will be the first budget delivered by a Fianna Fáil finance minister since Budget 2011.
Some Fianna Fáil politicians have slammed Fine Gael’s comments on the budget, with Senator Lisa Chamber saying:
“Obviously €1,000 in everyone’s pocket sounds lovely. But it’s populist and not costed.”
When asked if he would agree that Fine Gael proposals were populist, McGrath said:
“I’m not getting into putting any particular label on individual measures, all three parties within the government have signed up to a Programme for Government commitment to reduce the burden of income tax.”
“I’m confident given the health of the economy, the strength of the public finances, we will be able to reduce further the burden of income tax.”
Speaking at a Fine Gael parliamentary party meeting tonight, Varadkar said that he expects the Programme for Government commitments on relieving the tax burden on middle income earners to be honoured.
He also said that the state’s budget surplus could allow the government to take decisions on whether to reduce the national debt, increase spending on national infrastructure or set aside money for future pension liabilities and to what extent and combination.
McGrath stated this afternoon that a public consultation had been held on the introduction of a 30% income tax bracket and that he was considering feedback from the public on the matter.
“When I look at the overall issue of taxation, I also have to consider what our other needs might be. For example, can we do more for renters? We have said that we will examine but we haven’t made a commitment in relation to mortgage interest relief.”
“It’s my first budget as Minister for Finance, and I’m very anxious to look at the full suite of taxation policies.”
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All this talk of tax cuts! There is not a budge from Leo about reducing inheritance tax to what it used to be despite his promise to do so years ago.
Does the person who turns up for work feel “looked after” ?
@Brendan Shanahan: it’s a government of constant broken promises
“I shall NOT be bullied into making life easier for the workers during a time when we are awash with money from the overflow of tax from inflation, tax cuts are NOT for the working paupers” says Finance minister.
@9QRixo8H: We don’t need tax cuts, we need houses
@9QRixo8H: People need to be careful about tax cuts. The chartered tax advisors and a bunch of other lobby groups have been asking the government to lower taxes so that wages can be made more competitive for FDI. Eventually the wage brackets that initially get a bump from from a tax break will be reduced till workers have the same take home pay. That is what corporations, economists and tax advisors are openly arguing for. Medium to high earners are the target for cost reductions now.
Oh he’ll cut taxes alright; they’ll be throwing money around like confetti – before the next General Election.
This should quietly begin the inauguration of SF & FF as the next government partners. FG are due a time out.
@honey badger: If FF merge with SF for the next government, it will destroy them. Their hardcore voters would be clinically distraught!
@David Corrigan: FF would split no doubt.
@KilkennyProud: I think so. I think Mick Martin would go for it but I think at that stage, his TD’s would pull the plug on his “leadership” or whatever he calls it.
@honey badger: em – hold on, it’s a FF minister that insists he won’t be pressured into reducing the bail-out level of personal taxation and USCl at a time when the government has so much money that it doesn’t know what to do with it. Not to mention the vast sums that are being expended to facilitate (non-Ukraine) illegal immigration.
But never mind, we do have the alternative to elect SF and holy Holly, who are even more pro illegal immigration.
@David Corrigan: I think more of the FF party would have rathered go in with SF this time around. Only MM was/is so anti SF.
FF and SF have more in common than FF and FG do, so it’s a coalition I could definitely see. However, probably not if MM remains the leader of FF into the next election.
@NotMyIreland: Stephen Kearon would love that
@David Corrigan: MM won’t go into coalition with SF but some of his party would. FF and FG should merge as they are basically the same.
@NotMyIreland: It is an interesting thing to discuss for sure. MM is clearly anti SF but I think when push comes to shove, his love for power would smother his hate for SF.
He was always anti-FG and then they merged. The next 12 – 24 months will be interesting.
@Brian Madden: FF/FG can’t ever go looking for votes as separate entities again. They have already merged in a lot of peoples eyes.
@Frank Cauldhame: His love for the party who got rid of him has no limits.
Same as giving a certain person an increase of 80k on their wages mr mcgrath
He will toe the party line simple as that
They are the same party.
Two cheeks of the same ar$e.
Irish politics is a right laugh ! Makes the French seem sane !
Don’t cut taxes, and The Journal commentators will cry. Cut taxes, and The Journal commentators will cry that they’re trying to buy votes.
There is a very simple answer and only one logical choice, use the whole surplus for infrastructure
have your say