Recovery is still too weak to withstand any tax cut
Temporary budgetary advantages are no basis for a programme of tax cuts in the Budget, writes Marc Coleman
Published 20/04/2014 | 02:30
Is it too early to talk about tax cuts? Normally, it would be. With the Budget now taking place in October, speculation about it shouldn't really be inflicted on anyone until July, right? Fair enough.
But this year is an election year. And many voters would like to, ahem, express a view on the expectations they had regarding the burden of tax. Expectations for tax cuts have also been stoked by recent ministerial comment. Furthermore, the penny is dropping that asking Irish industrial workers to pay marginal tax rates designed for Monaco millionaires is neither politically nor economically sustainable. So please Santa, please, can I have a tax cut?
'Can Government afford to give you one?' is the real question. Were the McCarthy report to be implemented, local government to be radically slimmed down and reformed, and the privatisation nettle grasped and were welfare to be focused on need rather than universality then, yes, tax cuts would be possible. And desirable.