Sinn Féin is proposing to raise an additional net €1 billion in new taxes next year to fund a range of spending measures, such as investment in health, education and childcare.
The party accepts that there is €1 billion in extra funds available next year, the figure for the so-called fiscal space which is being used by the Government as it prepares to announce next Tuesday’s budget.
However, Sinn Féin says it would raise an additional net €1 billion in taxes, allowing it spend a total of €2 billion.
The party says it would raise an extra €1.7 billion in total new tax raises, while implementing just over €738 million in tax cuts - the biggest of which is the abolition of the property tax at a cost of €440 million.
The party’s pre-budget submission was outlined by finance spokesman Pearse Doherty, public expenditure spokesman David Cullinane and deputy leader Mary Lou McDonald at an event in Dublin on Tuesday.
While Mr Cullinane called the Sinn Féin plan “an investment budget’, the party also proposes to abolish water charges. Mr Doherty said a process needs to be established to refund those who have paid water charges.
Sinn Féin will also raise the minimum wage and take workers who would be paid the new minimum wage out of the USC net by increase the threshold at which it is paid.
Tax raising measures include the abolition of the special 9 per cent VAT rate on hotel beds, although it will still apply to sales in restaurants and bars of hotels.
Mr Doherty said this would raise €175 million and a new 7 per cent income tax rate on earnings over €100,000 would raise €464 million. Another large tax raising measure is a new 15.75 per cent rate for Employers’ PRSI on salaries over €100,000, raising €331.4 million.
A second home charge, at a rate of of €400, would also be re-introduced, raising €110 million; capital gains tax would be raised by 3 per cent to 36 per cent, raising €29.3 million; a 3 per cent betting tax would raise €95 million and a sugar tax €101.3 million.
The party says it will invest €491 million in a social housing programme, pledging an additional 7,066 homes over and above that already promised by the Government.
There are also promises to increase capital investment in education, heath and regional development by €179 million, €150 million and €117 million respectively. Increases in current expenditure include plans to increase access to medical cards and reduce prescription charges by €1 per prescription.
Sinn Féin also proposes to increase spending on disability services and mental health. Another of the key spending pledges is a €250 million package on childcare, which includes extending the free pre school year to 43 weeks and increasing maternity benefit by €40 and extending the payment by an additional two weeks.
A large plan for universal subsidised childcare for children between six months and three years is also included in the budgetary submission. It would not be income tested, as has been proposed by Minister for Children Katherine Zappone in a plan she has tabled for inclusion in the budget.
Sinn Féin claims that its €111 million plan would, on average, reduce fees by €96 per week per child. The subsidies paid to childcare providers would be higher where childcare is more expensive, Ms McDonald said.
When asked if Sinn Féin would support the plan being proposed by Ms Zappone, Ms McDonald said the party would do so if it adequately tackled the needs of families.
