The Government looks set to abandon tax cuts in favour of new ‘cost-of-living’ benefits. Leo Varadkar is planning a significant policy shift for the 2019 Budget which would see Fine Gael move away from major tax cuts.
This is a u-turn on the Taoiseach’s tax cut promises including abolishing the Universal social charge.
According to a senior government source, ‘Taxation is not off the table but the thinking of the Taoiseach and other ministers is focusing on getting something back from the taxes you pay and PRSI is the perfect point for that because it really suffered through the recession.’
The intention is for the government to widen the tax band and introduce new benefits for workers.
Fine Gael wishes to to implement more dental benefits, free eye tests, expand the free GP care scheme and reduce medical bills. As well as this they want to increase childcare subsidies, address parent leave and introduce more benefits for the self employed.
Fianna Fáil spokesman Michael McGrath maintains that reducing the USC was a major commitment in the confidence and supply agreement which Mr McGrath expects Fine Gael to respect.
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