Sargent Calls for Indexing of Tax Bands

I was glad to hear Sargent call for indexing of the tax bands today. Its the most sensible tax policy we have heard from all the parties. You would think this would be a natural policy for the PDs to come out with? But the fact is, the PDs are a BIG GOVERNMENT party. Like Fianna Fail, they are happy to tinker with tax rates arbitrarily, or even worse let them stagnate and allow inflation to eat us alive (think stamp duty). The current government have treated the budget (and the pre-budget estimates) as a protracted pre-election advertisement. Economists will tell you that you cut taxes in order to stimulate an economy i.e. when inflation and growth are low. Neither of these are currently the case in Ireland.


Let's not forget it was Ruairi Quinn, a labour minister who brought in the 12.5% corporation tax rate, unquestionably one of the biggest factors in our economic success. Think about that the next time you hear the incumbents raising the spectre of a rainbow government wrecking the economy.

One thing I will say for the PDs though is that they, unlike labour and the greens, managed to schedule their party conference on a day when Ireland were not playing rugby. Someone on the ball there.