Friday 28 April 2017

Noonan favours more income tax cuts

Finance Minister Michael Noonan. Photo: Steve Humphreys
Finance Minister Michael Noonan. Photo: Steve Humphreys
Gareth Morgan

Gareth Morgan

Finance Minister Michael Noonan says there is a good case to reduce income tax rates to reward and encourage families into work.

Mr Noonan also cited corporate tax reform in the US and the impact of Brexit as major threats, in a speech at the annual dinner of the Irish Tax Institute in Dublin.

He told the audience that tax revenues have grown from €34bn in 2011 to €48bn in 2016 - or by more than 40pc.

Mr Noonan said: "On the issue of domestic taxation, I should note that I am cognisant of the high marginal rates of income tax that apply to many people. We should be proud to have a highly progressive income tax system.

"We should also appreciate those that work hard to provide for their families and appreciate the value of retaining the incentive to work. I believe there is a good case to reduce personal taxation rates further, subject to the availability of budgetary resources.

"It is important that in the discourse on the appropriate amount of tax and spend in our economy, the views of those who contribute the majority of the taxation revenue are heard."

The Government announced a review of corporation tax last year, and Mr Noonan said he expected its recommendations in the second quarter of 2017.

Irish Independent

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