Brian Hayes MEP today said that as the economy begins to recover, income tax reductions coupled with wage increases will deliver rising levels of prosperity to all parts of society.
“While Sinn Féin stated recently that they are opposed to any tax cuts – including for low and middle income workers – the government is rightly focused on reducing the income tax burden on people. It is very welcome that the Taoiseach has pledged to cut the marginal rate of tax to below 50% in the next budget. This is the right approach and will put money directly into workers’ pockets. A broader tax base, which we now have, and less tax on work will help us meet our goal of full employment more quickly. Tax cuts on wages also helps the economy stay competitive.
“If we can maintain current high growth rates, then the government will be able to deliver tax cuts of the order of €500 million per annum for the next five years and beyond.
“Our current high rates of personal taxation are encouraging highly qualified young professionals to emigrate. If we want to keep our economy on a high growth path for the next ten years we will need to attract home many of those who emigrated in recent years as well as attracting new talent into the country. Tax rates, have a critical role to play in retaining and attracting highly qualified, highly skilled people.
“Wage increases linked to productivity and inflation, coupled with tax cuts will deliver rising levels of prosperity for all groups in society. The economic dialogue with social partners which is now getting under way must give the most careful consideration to getting the right balance of pay rises and tax cuts.”