Opposition attempts to force the establishment of a new commission on taxation were ruled out of order yesterday as the Finance Bill entered its committee stage in the Dáil.
The chairman of the Select Committee on Finance and the Public Service, Mr Seán Fleming, ruled that an amendment to the Bill proposing the establishment of a commission on taxation was out of order.
Mr Fleming argued that as the proposal would increase the tax burden, the Dáil's standing orders forbade its discussion. Labour finance spokeswoman Ms Joan Burton, who tabled the amendment, claimed he was trying to prevent the committee from doing its job, and accused Mr Fleming of "taking his orders from the Minister". Both he and the Minister for Finance, Mr McCreevy, rejected the claim.
The chairman explained that standing orders prevented members from tabling amendments that resulted in an increased charge to tax. Ms Burton argued that the committee frequently debated amendments that involved a potential increase in the tax burden.
However, Mr Fleming said that the amendment still fell because it would result in an automatic increase in the tax burden. "The establishment of such a body will have some associated costs, no matter how small," he said, adding that he had no control over the rules.
An amendment tabled by Fine Gael finance spokesman, Mr Richard Bruton, seeking a €2,000 annual tax credit for "high-performing amateur sportspeople" will be reconsidered at the Finance Bill's report stage.
Professional sportspeople based in the State are entitled to relief on their 10 best years at retirement. The Fine Gael amendment was drafted to extend recognition to GAA players and other amateurs.
Sinn Féin TD Mr Caoimhghín Ó Caoláin called for the introduction of a new tax rate of 50 per cent on earnings over €100,000 a year. He said the proposal should form part of an overall reform of the taxation system.
"We may have one of the lowest levels of taxation in terms of GDP [gross domestic product] of any of the EU countries, but if you look at the figures, they show that over 50 per cent of taxpayers in the State are paying tax at the higher rate of 42 per cent," he said.
"That is a very sorry state of affairs and is something that the Minister should address in terms of real taxation reform."
Mr Ó Caoláin was speaking on an amendment calling for all workers on the minimum wage, €7 an hour, to be taken out of the tax net. Mr McCreevy said it was Government policy to phase workers on the minimum wage out of the tax net over the projected five-year lifespan of the current Government, subject to the "overarching" requirement that it keeps the public finances in order.
The Minister told the committee that anyone earning the minimum wage, which was increased to €7 an hour at the beginning of this month, was earning €246 a week tax-free, which was 90 per cent of their earnings for a 39-hour week.
The amendment went to a vote and was defeated by seven votes to five.
