‘Slash income tax or Brexit will be wasted’ - Business leaders warn high rates are stunting jobs growth
High personal tax rates are stunting job creation and holding back the establishment and growth of businesses, a major report warns today.
Ireland needs to slash personal tax rates to create jobs and secure a Brexit dividend as the UK leaves the EU, according to leading entrepreneurs.
Nearly three-quarters of respondents said the overall cost of doing business in Ireland, coupled with the high rate of capital gains tax, was dampening entrepreneurial activity.
Ireland is set to be one of only two English-speaking countries within the EU, along with Malta, once the UK leaves the trading bloc in 2019.
The report from accountancy and consulting giant EY, published this morning, says that making the most of that opportunity will be key to future prosperity.
That tax burden - which bumps any single person earning more than €32,800 a year into the high 40pc tax band - has been frequently criticised by chief executives as being a major deterrent to luring staff and executives to Ireland.
In the UK, a single person does not enter the 40pc tax band until they earn more than £43,001 (€50,624) a year.
In Germany, a 42pc personal tax rate for a single person doesn't kick in until they earn more than €54,058 a year.
Kevin McLoughlin, partner lead at EY Entrepreneur of the Year Ireland, said: "At the moment, entrepreneurs suffer a higher tax burden than those in employment, so this is an area that needs to be tackled head-on by Government."