Friday, December 3, 2010

Labour coalition with Fine Gael looks like unsteady partnership

Today Labour and Fine Gael released their alternative budget plans to the public in Dublin.

Both parties say they would reverse the cut in the minimum wage and increase DIRT tax to get people spending rather than saving. However that is where the similarities end.
 
Fine Gael said a Capital Gains Tax on property sales - including family homes, but not for those in negative equity - should be imposed rather than a property tax. It also said no income tax hikes would take place, though people would pay more with changes to credits and bands from 2012.
The party said it can make more savings through expenditure cuts, but would hike motor tax and increase the price of alcohol.
 
Labour offered a different view, stating no welfare cuts, a new 48% tax rate, higher taxes on second homes and cuts in reliefs are planned.
 
Despite the obvious differences in the two parties proposals, Eamon Gilmore has ruled out a "government of the left", saying he will not enter government with Sinn Féin. This means if they plan on entering government, Labour must do as the junior partner to a Fine Gael party that is very clear in its intention to introduce cuts to welfare.





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