Government Won't Rule Out Increased Taxes And Further Cuts

A rise in income tax and cuts to social welfare cannot be ruled out, the government has warned as it examines its options for the next Budget.

This time last year, both Taoiseach Enda Kenny and Tanaiste Eamon Gilmore reassured voters that two key general-election pledges would be met.

These were keeping income tax and social welfare untouched in Budget 2012.

However, with the continuing euro crisis government ministers have become reluctant to give a similar assurance for Budget 2013. It is due to contain €1.25bn in tax increases, including a property tax, and €2.25bn in spending cuts.

Last night, the Department of Finance refused to say that the commitments on income tax and social-welfare rates would be honoured.


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