Levies To Be Permanent Says Lenihan

The Finance Minister Brian Lenihan has said on national radio that the doubled income levies are to be made permanent taxes.

Speaking on RTÉ's Today programme this afternoon, Mr Lenigan said the 2%, 4%, and 6% levies on lower, middle and higher earners would be fully integrated into the PAYE system by next December's budget.

During today's debate over Tuesday's budget in the Daíl, many of the new proposals have come under heavy fire from the opposition.

The Taoiseach rejected Fine Gael leader Enda Kenny's charges that the Government had taken soft options by targeting middle income families.

Mr Kenny has accused the budget is squeezing the life out of middle income families. In a statement from the Fine Gael leader, Mr Kenny said: "This Budget should have been about squeezing out of public spending the waste and bureaucracy that has been the hallmark of Fianna Fáil Governments. Instead, it has been about squeezing the life out of young, middle income families."

The Labour leader also launched a stinging attack on Fianna Fáil, saying the party has wrecked the economy and that the Budget was a result of running the country on 'Galway Tent' economics.

Eamon Gilmore also accused the budget of targeting middle income families unfairly. The labour leader said that a couple earning €45,000 each would be loosing around €9400 over the year due to the increased income, pension and health levies, childhood payment cuts, the mortgage relief reduction, as well as diesel and cigarette increases.

Mr Gilmore said: "This is a Budget on a timer - you will not feel its impact until you get your pay packet in May, pay your insurance - or make your next tax return."

He added: "This Budget should have been about jobs, but it isn't. It should have been fair. But it isn't."

Sinn Fein have also slammed the scrapping of welfare bonus at Christmas. TD Caoimhghin Ó Caoláin hit out at the Government's decision to abolish the double-payment given to social welfare recipients at Christmas time, which amounts to a cut of around 2% in the annual income for people on social welfare.

Mr O Caolain says this will drive financially stretched parents into the hands of money-lenders at Christmas.

(DW/BMcC)