Friday 21 October 2016

Left-wing groups split over corporation tax

Published 11/10/2016 | 02:30

PBP TD Richard Boyd Barrett alongside AAA's Paul Murphy. Photo: Tom Burke
PBP TD Richard Boyd Barrett alongside AAA's Paul Murphy. Photo: Tom Burke

Anti-Austerity Alliance TDs want to raise the rate of corporation tax on profits over €800,000 to 25pc - putting them at odds with their partners, People Before Profit.

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The AAA-PBP's alternative budget sets out a target of "radical change" based on a massive €25bn adjustment next year.

They want to scrap water charges, property tax and the universal social charge, while simultaneously returning social welfare payments to boom time levels.

The group say an extra €4bn could be raised by closing tax loopholes and making other adjustments to corporation tax but there are varying views on the current 12.5pc rate.

PBP's Richard Boyd Barrett said there was a "slight difference of opinion" on the issue, with his party believing there should be "a proper 12.5pc rate on gross profits and then raising it a few points".

Paul Murphy of the AAA said their plans for a 25pc rate on profits over €800,000 "wouldn't affect small businesses".

He also proposed new income-generating measures, including: the introduction of a millionaire's tax of 2pc on net assets exceeding €1m, which would raise €2.9bn; a landlord's tax on non-family homes, which would raise €450m; and a high-income social charge and new rates of marginal tax on high levels of income to replace the Universal Social Charge

The group would invest €24bn in public housing construction, a national health service, a national childcare service, education, the arts, public transport and other areas.

Irish Independent

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