Social Democrats propose minimum wage increase and tax on super wealth

A two euro increase on the minimum wage and a tax on super wealth are among proposals in the Social Democrats’ alternative budget.

The minimum wage rise would bring it to 13.30 euro an hour while the tax on net wealth would see 0.5% levied on assets in excess of one million euro and 1% on assets over two million euro in value.

Family homes, farms and businesses would be exempted from the suggested wealth tax.

The Social Democrats’ proposals outlined on Wednesday, titled Unlocking the Future, place a focus on housing, children and climate action.

“Low incomes that are impossible to survive on given the extremely high cost of living in Ireland are a huge concern,” said the party’s finance spokeswoman Roisin Shortall.

“We would increase the minimum wage by two euro to 13.30 euro per hour and introduce a living wage within the next two years.”

Deputy leader and party spokesman for housing Cian O’Callaghan said: “The housing disaster is the single biggest issue we face as a society. It is causing devastation across the country.

“We need an additional 1.2 billion euro investment in the provision of affordable homes – a near doubling of the current inadequate Government target – to ensure the locked-out generation can afford a home to rent or buy.

“We must also do something about extortionate housing costs. Rents are now in the stratosphere and the renters’ tax credit must also be increased so that it puts one month’s rent back in renters’ pockets.”

The party also advocates increasing the parent’s leave entitlement by six weeks per parent to 13 weeks each. When combined with other leave entitlements, the party says its plan would give parents access to 12 months of paid leave for each child.

Party TD Jennifer Whitmore said: “We want to do something that helps new parents take time to spend with their families when a baby is born. We believe this measure can do that.”

The Social Democrats have also proposed a further 30% cut in childcare fees and a separate 100 million euro capital investment to initiate a not-for-profit public model of childcare.

On climate change, the party wants five billion of the Government’s corporation tax surplus invested in a new transformation fund to facilitate the transition to greener energy sources. The party wants to see a new semi-state company established to invest in wind and solar power.

It also advocates a one euro off-peak fare for public transport accompanied with increased capacity across bus, Luas, Dart and rail services.

An increase in core social welfare payments by 25 euro per week and the introduction of an additional weekly ‘Cost of Disability’ payment are also included in the alternative budget plan.

The party has also called for pay parity for workers in state funded community and voluntary organisations, so their salaries are aligned with counterparts directly employed by the state in disability and healthcare services.