Budget should focus on cuts, not tax hikes -- survey
Published 24/09/2010 | 05:00
FEWER than one in five people are prepared to pay more tax, as the Government bids to generate a minimum of €3bn in savings and cutbacks in the Budget.
Instead, 57pc of the public want the Government to concentrate on reducing public spending as it drums up multi-million savings.
Of the 1,000 people surveyed by Millward Brown Lansdowne for TV3, only 17pc said they would be prepared to have their taxes raised. Just 18pc said the Government should do both -- raise taxes and reduce spending.
With 57pc opting for cuts to public spending, it is a clear signal to the Government of the unpopularity of introducing water charges and property taxes, raising income tax rates or changing PRSI bands.
In the forthcoming Budget, capital spending on infrastructure will be cut by €1bn, meaning a further €2bn still has to be identified in cuts to day-to-day spending and tax hikes.
Up to €750m is expected to be raised on the taxation side, but without an increase in income tax rates.
Cabinet meetings are ongoing about where and how to find €3bn in cutbacks ahead of the December 7 Budget.