Renua wants to abolish TV licence fee, motor tax and set flat income tax at 23pc
RENUA Ireland wants to abolish the television licence, scrap motor tax and introduce a flat 23pc rate of income tax.
Lucinda Creighton’s party has launched what she described as a “big ideas” pre-Budget submission in which it outlined a series of changes to the tax system.
She said that asking people to pay €160 for a TV licence that mostly goes to RTE “doesn’t represent the reality of modern day life”.
“I don’t think that it’s reasonable to pay €160 a year to maintain models that were fit for a time past,” Ms Creighton said. Instead Renua would create a broadcasting fund and allow all broadcasters to tender for it.
Renua wants to move towards a flat-tax system “as swiftly as possible” as the current system is forcing people to work part-time or refuse extra hours because extra earnings are eaten up by tax.
The party says that its “conservative projections” show that a flat rate of 23pc would generate approximately 75-80pc of the existing income tax take.
However, Ms Creighton said workers would retain extra income and this would boost the economy.
Labour and Fianna Fail were quick to dismiss the idea, saying it would benefit the richest.
Junior minister Kevin Humphreys said: “Right wing republican candidates in the US are fans of flat taxes as they benefit the ‘fat cats’ at the top but even Donald Trump thinks this radical form of tax policy is too unfair. If Renua’s tax policy is too right-wing for Trump they’re in trouble.”
But Ms Creighton argued that a flat tax “spreads the burden across all workers.”
Renua also wants to do away with motor tax on all vehicles, saying that it is costly to collect and police. Instead the party would put a direct levy on fuel.