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Unions want 48pc tax rate on incomes over €100,000

THE trade union movement is proposing a 48pc tax rate for incomes over €100,000 as well as a 1pc wealth tax.

Union umbrella body, the Irish Congress of Trade Unions (ICTU), is calling for a €9bn investment stimulus which it says will create 100,000 jobs over three years.

ICTU general secretary David Begg said funding would come from various channels including an exemption of pension funds from the pension levy if invested in infrastructure bonds.

In its pre-Budget submission, Mr Begg said austerity policies have made things worse and its programme would "boost GDP by 2pc per year".

Under another proposed measure, a 1pc wealth tax would apply to assets over €2m but houses worth less than €1m would be exempt. It also called for the introduction of a financial transaction tax which it says would raise €500m per year.

The pre-Budget submission also prioritised tax increases over spending cuts and called for the period of adjustment to cut the deficit to 3pc of GDP to be extended to 2017.

Ireland's adjustment over the 2012-2014 period is accounted for by approximately two-thirds cuts and one-third tax increases. Mr Begg said Ireland did not have the growth that was projected because the calculations the troika made were fundamentally wrong.

The union is also calling for restrictions on tax write-offs for corporations.

Irish Independent