What are the larger parties offering voters on tax?

With the economy powering ahead and money pouring into the State's coffers, many politicians are making generous promises to the voters.

Economics and Public Affairs Correspondent David Murphy examines the tax plans of the three larger parties and how much the measures would cost the Exchequer.

Tax on income:

Sinn Féin

Sinn Féin plans to abolish Universal Social Charge (USC) for the first €45,000 of income, increase tax credits by €200 and raise the point at which people pay the 20% standard rate of tax by €4,000.

The three measures will cost the Exchequer €4.1 billion.

Fianna Fáil

Fianna Fáil plans to cut the lower rate of USC from 3% to 1.5% over the lifetime of the next government at a cost of €925m.

It plans to abolish the USC surcharge of 3% on self-employed income over €100,000 which would cost €81m.

It would increase tax credits by €100 annually over the coming five years at a cost of €640m.

It proposes increasing the entry point to the 40% rate of tax to €50,000 over a five-year period (it is currently €42,000.) That would cost €1.5bn.

It says it would increase inheritance tax thresholds in each future budget.

Fine Gael

Fine Gael would increase the point at which a worker enters the higher tax band by at least €2,000 each year. The annual cost of this measure is €2.5bn.

It says it plans to increase tax credits by €75 annually at a cost of €2.1bn.

Fine Gael would raise the threshold for the 3% USC band from €27,382 to €40,000 and the entry threshold for the 8% USC band from €70,044 to €75,000. It would also abolish the USC surcharge on self-employed income.

The changes would cost over €1bn.

It would raise the point at which children pay inheritance tax when they inherit from a parent or guardian from €400,000 to €500,000 at a cost of €169m.

VAT and hospitality:

Fine Gael

Fine Gael is proposing to reduce the VAT rate for food, food services, admissions to entertainment, hairdressing and beauticians to 11%.

This is a significant move considering it declined to cut VAT for the hospitality industry despite intense lobbying in last month’s Budget. This measure would cost €407m.

Sinn Féin

Sinn Féin plans to reduce the VAT on hospitality from 13.5% to 9% and increase tax credits for small and medium businesses.

These measures would cost €648m.

Fianna Fáil

Fianna Fáil has not proposed cutting VAT for hospitality but has committed a range of additional supports in recognition of the difficulties faced by the industry.

Housing and tax:

Sinn Féin

One of the party’s biggest proposals is to abolish the local property tax which would cost the State €531m.

Sinn Féin says it will fill that hole in the public finances with money from the Exchequer.

It also plans to give tenants a tax credit which would be equivalent to one month’s rent.

It proposes scrapping stamp duty on homes below €450,000.

It plans to abandon the concrete block levy, which was designed to fund redress to homes affected by building defects, and plans to extend mortgage interest relief.

Its housing measures would cost €759m.

Fianna Fáil

Fianna Fáil says it will progressively double the €1,000 renters tax credit to €2,000.

It will expand the Help to Buy scheme. It allows a home buyer to reclaim tax they have paid in the past towards a deposit for a house.

Fianna Fáil now plans to allow home buyers get a tax credit in respect of rent paid in the past. This would cost €37m.

Fine Gael

Fine Gael plans to increase the maximum amount buyers can claim under the Help to Buy scheme from €30,000 to €40,000 at a cost of €240m to the State.

It wants to increase the renters tax credit by €100 per annum to €1,500 over the next five years.

That would cost an additional €100m each year.

Energy:

Sinn Féin

Sinn Féin says it won't proceed with any further carbon tax increases.

It also proposes reversing the two most recent excise hikes on petrol and diesel in the past 12 months.

However, at a time when the public are being discouraged from using fossil fuels - it makes petrol and diesel more attractive which could affect consumption.

These measures will cost €814m.

Fianna Fáil

Fianna Fáil says it will follow through on its commitments to increase carbon tax and emphasises moving away from fossil fuels.

It says it is committed to keeping VAT on gas and electricity at 9% over the next five years. It is scheduled to return to its original rate of 13.5% next April.

That would cost €194m.

It also proposes to switch to direct state funding for the Public Service Obligation on energy bills which would result in a reduction of €40 per annum.

Fine Gael

Fine Gael plans to tax gas and electricity at its new proposed VAT rate of 11%.

It is also committed to continuing carbon taxes.