SINN FÉIN will propose a budget adjustment of €4.67bn in 2011 and a three-and- a-half-year economic stimulus package worth €7.6bn when the party reveals its economic recovery plan tomorrow.
The Sunday Tribune can reveal details of the Sinn Féin plan titled 'There is a better way', as the party becomes the first of the opposition parties to publish a detailed pre-budget proposal.
In a move that is clearly designed to put clear blue water between itself and Labour, which sources claim is a "catch-all party without concrete proposals", Sinn Féin will present the proposals to the government much earlier than Fine Gael and Labour so they can be considered for inclusion in the budget.
The party will propose raising €410m by introducing a third rate of tax of 48% on individual incomes in excess of €100,000. A further €1.1bn could be raised through the standardisation of all discretionary tax reliefs.
The party would introduce an income-linked wealth tax of 1% on all assets, including property, in excess of €1m and excluding working farmland regardless of residency. It believes this tax could raise €1bn in revenue.
Other revenue-raising measures in the Sinn Féin proposal are a 15% increase in capital gains tax to 40% (to raise €240m) and a 10% increase in capital acquisitions tax to 35% (to bring in €96m). Dirt tax would get a 5% hike to 30% (to raise €123m) and the earnings cap for pension contribution tax relief would be reduced to €100,000 (raising €85m).
Sinn Féin also proposes increasing tax on second homes to €600 and introducing a tiered tax increase on subsequent homes so the tax would be €700 on third homes and €800 for fourth and fifth homes.
The party also proposes examining an income-linked waiver for individuals with second homes who cannot sell them in the current climate.
The party claims that €4.078bn could be saved through abolishing the PRSI ceiling and tax exemptions such as mortgage interest relief for landlords and the income tax exemption for share-option schemes.