RETENTION OF TOXIC TAX BREAKS SHOWS GOVERNMENT BANKRUPTCY

22 Jan 2011

Congress has described the decision to delay closing off 'toxic' property tax breaks in the Finance Bill as yet another sign of the Government's economic and moral bankruptcy

Congress Economic Advisor Paul Sweeney said: "These toxic tax breaks have greatly enriched a tiny minority and contributed hugely to the economic crash.
It is clear that Fianna Fail and the Greens have learned nothing and forgotten nothing.

"Once again, Government has buckled under pressure from wealthy, vested interests and put their wishes ahead of the needs of wider society. It was the same speculators who cost Ireland dearly in lost tax revenue, overheated the property market and helped crash the economy. The decision to maintain these toxic tax breaks for many months is symptomatic of that economic foolishness," Mr Sweeney said.

He contrasted the Government's decision to retain the tax breaks with "their speed in cutting the Minimum Wage - a cut that will not create one single job or save the state one cent. Strangely, the IMF/ ECB Memorandum of Understanding called for the Minimum Wage to happen by May. But Minister O'Keefe rushed it through four months early before retiring from public office."

Mr Sweeney said all the toxic property tax breaks should be terminated immediately after the election by the new Government.