Budget 2021: Sinn Féin with the proposal to impose a Solidarity tax

Sinn Féin calls for the introduction of a Solidarity tax on those earning more than 140,000 as part of an alternative budget proposal.

According to the Irish Times, Sinn Féin has said that this is not the time for economic conservatism during the Covid expansion and that the party will spend 5.3 billion more than government plans in the 2021 budget.

Sinn Féin says the proposed tax measures could partially cover the additional cost of 1.5 billion. The party has proposed a three per cent levy for those with a personal income of more than 140,000 and a 5 per cent increase by 2022.

Sinn Féin is also proposing the removal of tax credits for those with personal incomes above 100,000 and the new PRSI rate for employers with income above 100,000.

The party says fiscal conservatism should be avoided, which could lead to increased unemployment and recession and destroy the country’s rapid recovery.

According to Sinn Féin, the country’s progress can only be restored through sustainable borrowing and new tax measures.

The party said that if they were in power, they would cut the PUP and introduce a 1.5 billion wage support plan instead.

VAT on areas such as hospitality where Covid has been adversely affected should be reduced from 13.5 per cent to 9 per cent by June, said Sinn Féin.

The party is proposing 449.7 million for additional hospital beds and ICU facilities, 150 million for new health workers and 1.5 billion for community housing.