Ibec calls for income tax re-think
Ireland's marginal tax rate needs to be cut to 45pc to put it in line with competitor economies, employers' group Ibec has said in an election report.
The report being released today says that tax on work is too high, and at the same time too many people are not paying anything at all. It also said that the USC should be used to provide for future pension needs.
"The general election tax debate needs to be informed by the facts. Ireland raises more than average European countries through income tax, but our marginal rate is out of line and workers hit it too early," said Ibec senior economist Gerard Brady. "Election tax promises have focused on who will get what, but we need to ensure the tax system as a whole works to support growth and job creation," he said. The report found that Irish income tax levels are above the European average.