Cost of Living Reduction Policy
Lower Costs, Better Living for All Irish Citizens!
Introduction
Ireland’s cost of living has soared in recent years, placing immense financial strain on Irish families and workers. High housing costs, increased energy prices, and the burden of taxes introduced for climate change have compounded this crisis. As an Irish nationalist party, we are committed to reducing the cost of living for all Irish citizens, ensuring they can afford basic necessities and enjoy a higher standard of living. This policy includes initiatives inspired by successful measures in other parts of the EU, focusing on rolling back excessive taxes, reducing energy and housing costs, and implementing sustainable measures that benefit Irish households and businesses.
Highlights
Eliminate Climate Change Taxes: Remove additional taxes introduced since 2015 related to climate change, such as carbon taxes and levies on fuel, energy, and transport.
Energy Price Reduction: Cap energy prices and increase domestic energy production, inspired by measures from France, which prioritize affordable energy for citizens.
Housing Affordability Measures: Remove excessive regulatory costs in construction, following successful reforms in Poland, and reduce VAT on home construction to lower housing costs.
VAT Reductions on Essentials: Reduce VAT on essential goods and services, mirroring Hungary’s VAT reductions on food, fuel, and utilities to ease financial pressure on families.
Tax Reform for Working Families: Increase tax credits for middle- and low-income families to offset the rising costs of childcare, healthcare, and education, following models from Germany, and implement Hungary’s tax incentives for larger families.
Abolish the Universal Social Charge.
Review of Green Subsidies: Audit and reduce green subsidies and programs that disproportionately increase costs for consumers while offering minimal benefits.
Public Transport Price Cuts: Pilot reduced public transport fares for all commuters, enhancing affordability and mobility, drawing from Vienna’s successful public transport price reductions.
Core Pillars
1. Eliminate Climate Change Taxes
End Carbon Taxes: Remove all carbon taxes introduced since 2015. These taxes have significantly raised the cost of fuel, heating, and electricity, directly harming low- and middle-income families. Similar moves have been adopted in Poland, which resisted EU pressure for climate taxes to protect its citizens.
Abolish Energy Levies: Eliminate climate-related levies on energy production and consumption. The focus should be on reducing costs for Irish households, not burdening them with taxes that do little to address global climate issues.
Fuel Tax Reduction: Inspired by France's fuel tax freeze, cut excise duties on petrol, diesel, and home heating oil to bring down transport and heating costs for all citizens, particularly in rural areas where people depend on vehicles for daily life.
2. Energy Price Reduction and Security
Cap Energy Prices: Introduce temporary energy price caps, as France did during the energy crisis, to prevent excessive profiteering by energy companies during times of crisis. Ensure that energy providers are subject to strict regulations that prioritize affordable energy for citizens.
Boost Domestic Energy Production: Take inspiration from European energy models by investing in natural gas, hydroelectric power, and renewable energy sources. By reducing dependency on foreign imports, this strategy can stabilize prices and create jobs for Irish workers.
Encourage Renewable Energy Without Penalty: Germany has implemented policies to transition to renewable energy without burdening consumers with extra costs. Ireland can promote renewable energy development, but without passing additional costs to households, focusing instead on cost-effective solutions that lower bills.
3. Housing Affordability Measures
Remove Costly Regulations: Following Poland’s example of reducing regulatory hurdles in construction, Ireland will review and remove excessive regulations introduced in recent years that have driven up the cost of housing. This will streamline building processes and reduce bureaucratic delays, making homes more affordable.
Reduce VAT on Construction: Lower VAT rates on new home construction and renovations, as done in Hungary, incentivizing builders to construct more affordable homes and passing savings on to buyers.
Rent Relief for Tenants: Reintroduce a rent relief scheme similar to measures seen in Germany, where tenants receive government tax breaks or financial support to offset high rental costs.
4. VAT Reductions on Essential Goods
Lower VAT on Essentials: Reduce VAT on essential items like food, fuel, and energy from the current standard rate to a reduced rate, inspired by Hungary, which lowered VAT on key goods to help families afford basic necessities.
No VAT on Children's Goods: Remove VAT entirely from children’s goods, including clothing, school supplies, and childcare essentials, mirroring policies in Germany and Finland, making it easier for families to meet the needs of their children.
5. Tax Reform for Working Families
Abolish the USC: Eliminate the Universal Social Charge (USC), providing immediate financial relief to those struggling with the rising cost of living.
Hungary’s Tax Incentives for Larger Families: Implement tax exemptions for larger families, modelled after Hungary’s family tax system, where mothers of four or more children are exempt from paying personal income tax. This will encourage family growth and reduce the financial burden on families with more children.
6. Review of Green Subsidies
Audit of Climate Subsidies: Conduct a comprehensive review of green subsidies that increase consumer costs. Similar to reforms in Austria, any subsidies found to disproportionately raise prices or deliver minimal impact will be reduced or eliminated.
End Subsidies that Harm Households: Eliminate subsidies that increase energy bills, such as those for inefficient or unproven green technologies, while focusing instead on cost-effective solutions that do not place undue financial pressure on families.
7. Public Transport Price Cuts
Lower Public Transport Fares: Reduce fares on public transportation to make commuting more affordable for all citizens. Following the success of Vienna, which implemented city-wide reductions in public transport fares, Ireland can enhance access to employment, education, and essential services.
Free Travel for Students: While Ireland already offers free public transport for pensioners, we will extend free public transport to students, a move inspired by Luxembourg, where free public transportation for young people helps reduce financial pressure on families while promoting public transport use.
8. Small Business Support and Employment
Lower Corporate Taxes for Small Businesses: Cut taxes for small and medium-sized enterprises (SMEs), similar to reforms in Poland, to encourage local entrepreneurship and help reduce the cost of goods and services. This will increase competition, drive down prices, and stimulate job creation.
Incentivize Local Hiring: Provide tax credits to businesses that prioritize hiring locally, taking inspiration from Hungary, where businesses are rewarded for hiring local workers, ensuring that the Irish workforce is prioritized and reducing unemployment.
Conclusion
This comprehensive cost-of-living reduction policy draws inspiration from successful EU initiatives to alleviate the financial burden placed on Irish citizens. By removing unnecessary climate taxes, reducing energy and housing costs, and lowering VAT on essential goods, this policy focuses on practical solutions that have worked in other countries. We are committed to creating a more affordable Ireland for families, workers, and small businesses by implementing tried-and-tested measures from across Europe.