Minister for Finance outlines plans for an income tax system that will be fair and equal.
The new tax system should be a step towards equality between single and married people irrespective of whether the married couple have one or two incomes.
Tánaiste and Minister for Finance George Colley proposes that this could be achieved by a system of income splitting. Each spouse would be assigned half of the couple's total income receiving a single person's tax relief and allowances.
A married woman would receive the same take home pay as a single woman and a married man would receive the same take home pay as a married man.
Everybody would be taxed the same.
Under the system, the family unit would benefit from greater income tax relief.
The cost to the exchequer of such a system would be £60 million a year. After the April budget, the extra cost would be £40 million as this year's budget has already put the process in place.
The objective is to achieve equality in the tax system for all while not discriminating against women working in the home. George Colley says that everybody who is liable for income tax, whatever their level of income, will benefit from this system.
There will be equality of treatment between individuals.
An RTÉ News reports on 11 March 1978. The reporter is Ronnie Turner.
