Push up the property levy and cut income tax – report
A BIG hike in the property tax could fund cuts in income tax and more worker training to help tackle unemployment, a new expert report recommends.
The report by economists in the Department of Public Expenditure suggests that €1.5bn could be generated from a tripling of the property tax.
This could be augmented by other taxes such the carbon tax and allow cuts of up to €500m in income taxes. The income tax cut would stimulate job creation and this could be boosted by better job-training for workers creating some 26,000 jobs.
The study, entitled, 'Economic Impacts of Selected Structural Reforms in Ireland', argues that the property tax does less damage to job-creation than income tax increases and increased property taxes can help cut unemployment.
Overall, the study suggests that higher property tax and lower income tax can boost national output by 0.3pc over the next six years.
But the proposals have been criticised by Fianna Fail's finance spokesman Michael McGrath, who described them as a "non-runner".