Sinn Féin’s Budget 2021 proposals include € 1.5 billion in tax measures aimed primarily at high-income companies and individuals



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SINN Féin proposes tax increases of 1.5 billion euros and other measures aimed primarily at high-income companies and individuals to partially finance more than 18 billion euros in additional expenses next year.

The party would target people who earn more than € 100,000 and grants in what it calls “gold-plated pensions”, in addition to closing a “loophole” related to companies and eliminating the aid scheme to buy in its budget proposals that are published today. .

The additional spending on Sinn Féin’s plan of 18.2 billion euros is more than 6 billion euros more than what the Government has indicated it will introduce on Budget Day.

Only a quarter of the additional spending on Sinn Féin proposals over and above the amounts the Coalition is expected to spend would be offset by what Finance spokesman Pearse Doherty described as “progressive taxation” measures.

The rest would have to be borrowed as Ireland faces another huge deficit next year due to massive increase in spending due to the Covid-19 pandemic.

Sinn Féin says it would use the additional spending to restore the maximum rate of Pandemic Unemployment Pay to € 350 per week at a cost of € 1.5 billion and deliver 12,000 social housing and 8,000 affordable rental and purchase housing at a cost of other. 1,500 million euros.

The party also proposes to reduce the VAT rate for the hospitality sector affected by the pandemic from 13.5% to 9% for one year at a cost of 320 million euros.

522 million euros would be spent to replace the government spending and stay plan with a tourism and hospitality voucher worth 200 and 100 euros for each adult and child, respectively.

And it would extend the commercial tariff exemption until June for an amount of 520 million euros.

Reducing the cost of rent by up to 1,500 euros for tenants and prohibiting increases for three years would cost 257 million euros, according to the party’s plans.

The party also proposes to reduce the local property tax by 20% at a cost of 97 million euros.

Sinn Féin says they would increase the salary of child care workers to a living wage of € 12.30 and reduce the cost of child care by a third in 2021 at a cost of € 70 million, or € 150.5 million for the first full year. .

Introducing an 80 percent cap on capital allowances claimed against intangible assets acquired by multinationals would raise 720 million euros according to Sinn Féin estimates.

A 1% wealth tax on the portion of assets that is held above € 1 million would collect € 89 million.

A 3% “solidarity tax” on individual income over 140,000 euros would generate 152 million euros.

The gradual elimination of tax credits on income above 100,000 euros would generate 236 million euros.

Reducing subsidies to “golden pensions” by lowering the income cap and lowering the standard fund threshold to € 1.5 million would raise € 384 million.

A second home charge of € 400 would raise € 64 million.

The abolition of the purchase aid program would save 100 million euros.

Increasing excise duties by 30 cents on a pack of cigarettes would generate 34 million euros.

Doherty said the 2021 Budget is taking place “at a time like no other” and highlighted the uncertainty and difficulties faced by many.

He said: “Our budget is about giving certainty to workers and families … protecting them while facing the ongoing threats posed by Covid-19.”

Doherty argued that the government’s flawed budget strategy “is simply not enough to meet the challenges we face.”

He said: “It provides only 900 million euros to cope with the pressures on daily services. It commits to a level of capex that was already committed more than a year ago.”

Doherty said the increases in current spending that his party is proposing are “offset by progressive taxes worth 1.5 billion euros.”

He said Sinn Féin’s proposals would provide “a multi-million dollar stimulus that will create jobs, that will support revenues that will rebuild the economy,” adding that the measures are “ambitious but necessary.”

Doherty admitted that the party’s plans would involve an additional loan of 6 billion euros.

But he argued: “This is the time to make the investment in the economy.

“In fact, the point is not that we do too much, the danger is that as a country we do too little.”

He said: “Doing too little means that jobs could be lost permanently, it means that businesses will not be supported, it means that our economy will not recover in 2021.”

He said the Irish Fiscal Advisory Council (IFAC) and the International Monetary Fund (IMF) are warning that now is the time to borrow to stimulate the economy.

Online editors

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