Es geht weiter Bergauf . Herr Noonan möchte die Steuern kürzen um mehr Jobs zu schaffen
Michael Noonan: 'We want tax cuts to create jobs, not win votes'
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OLM KELPIE IN BRUSSELS – 17 FEBRUARY 2014
THE Government is looking at possible tax cuts to boost job creation and not to win votes, Finance Minister Michael Noonan has said.
The coalition has been building up expectations of an income tax cut in October's Budget 2015.
The minister told a conference in Brussels this morning that the low threshold at which workers hit the higher rate of tax of 41pc was damaging job creation.
He also said the Government maintains reasonable support and has expectations of re-election.
''As a labour market initiative to make work more worthwhile, we're saying that as soon as we have resources, our first priority would be to widen the average rate band of income tax so that people can earn more before they hit the higher rates, so that people can do overtime before they hit the higher rates, so that people can do extra work before they hit the higher rates,'' he said.
''It's not a promise to endear ourselves with the electorate. It's another instrument of labour market policy. I want to lay it out clearly and have the debate on it.''
Workers are hit with the marginal rate of tax on income above €32,800.
Lifting the income threshold where the higher rate kicks in is likely to be the focus of any cut in personal tax in the Budget.
Taoiseach Enda Kenny has said examining the possibility of a tax cut was a priority for the Government.
Mr Noonan was addressing a conference organised by the Organisation for Economic Cooperation and Development, the global think tank, in Brussels along with Dutch Finance Minister and Eurogroup chair Jeroen Dijsselbloem, OECD Secretary General Angel Gurria, Portuguese Finance Minister Maria Luís Albuquerque and Spanish Finance Minister Luis De Guindos.
Mr Noonan also said that one of the things the Government did well was that it ''brought the people with us''
''Politics is an art rather than a science,'' Mr Noonan said.
'' We would still have resonable support and expectations of getting reelected.''
The minister said the country was ''in a pretty good position''.
He also said youth unemployment levels across Europe ''puts the wind beneath the wings of every extremist in Europe''
Mr Noonan will is attending a meeting of Eurozone ministers in Brussels this afternoon.
He also said there needed to be more non-bank credit in Europe to get the continent growing.He also raised concerns about the cost of energy.
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