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Monday 5 December 2016

IDA helped to scupper tax-hike plans

Fionnan Sheahan Political Editor

Published 08/12/2012 | 05:00

THE IDA helped to scupper Labour Party plans to hike income tax for high earners and charge employers for sick pay, the Irish Independent can reveal.

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The state jobs agency believed the changes would damage the country's ability to attract foreign investment.

IDA chief executive Barry O'Leary is understood to have spoken directly with Taoiseach Enda Kenny expressing his concerns on the sick-pay proposal.

Labour Party ministers had to back down last weekend on their demands for a 3pc increase in the Universal Social Charge (USC) for anyone earning more than €100,000.

And Social Protection Minister Joan Burton's plan to make employers cover the cost of sick pay has disappeared completely.

There was no mention of the proposal in the Budget, even though the examination of the issue was flagged last year.

Mr O'Leary told the Irish Independent yesterday that the IDA did give its views to the Government on the USC hike and the sick-pay issue.

Irish Independent

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