Vol. 443 No. 6
39 Mr. Rabbitte asked the Minister for Finance if, in view of the speech by the Taoiseach in Kilkenny on 8 May 1994, in which the Taoiseach said that the economy was in excellent shape and that the future should bring a steady easing of the tax burden which could only be of benefit to the farming community, the specific proposals, if any, he intends to bring before Government; and if he will make a statement on the matter.
As the Deputy is aware, it is stated Government policy to seek to address the long-run tendency for taxation on "earned income" to contribute a growing proportion of total revenue, through concentration on improving the taxation position of taxpayers on lower to middle incomes. This strategy has in particular two priority goals: (i) alleviating the burden of taxation on workers with low incomes, especially those with families, and (ii) raising the income threshold at which the higher income tax rate comes into play. Significant steps were made in this year's budget towards that end and, within responsible budgetary parameters, further steps will be taken in future budgets. The extent to which any specific sector, including farmers, or even groups within sectors, benefits will, of course, depend on the precise measures implemented.
