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Taxation

Budget 2019 marks the third Budget of the current Government. We track the cumulative impact of changes to income taxation and welfare over the Government’s three Budgets.

The distributive effects of an alternative Budget 2019 Income Tax Package.

Some of Ireland's richest have a taxable income of less than the average industrial wage, with many paying income tax at a lower rate than the average taxpayer. What can government do in Budget 2019 to counter this highly unfair situation?

With 800,000 people in poverty, record numbers on healthcare waiting lists and more than 3,800 children homeless, Ireland is a profoundly unequal place. Inequality hurts the economy, leading to unstable economic growth and employment, higher debt, housing bubbles and increased homelessness. Substantial evidence has emerged in recent years to support the view that economies and societies perform better across a number of different metrics, from better health to lower crime rates, where there is less inequality.

Some Reflections on Inequality in Ireland’ is part of Social Justice Ireland’s Policy Research Series. It reflects on the reality of equality and the myths that enable its persistence.  It looks at inequality in economics and the ideologies in public policy that have produced the present unequal situation across the world. 

Just two of the income taxation proposals currently under consideration for Budget 2019 would produce fair outcomes: an increase in the personal tax credit for everyone or a reduction in the 0.5% and 2% USC rates. The impact of most income tax proposals currently being considered by government would give far greater benefit to people earning higher incomes than to lower income employees.

Social Justice Ireland published Fairness and Changing Income Taxes: September 2018 on 18th September. The study assesses the fairness of seven possible income taxation options, each with a full-year cost of between €254m to €348m; equivalent to between 1.2% and 1.6% of the annual income taxation yield.

In this section of our National Social Monitor Autumn 2018 we look at the changing nature of Ireland's tax take, discuss broadening the tax base and increasing Ireland's per capita tax take.

Government should stop subsidising the Accommodation and Food Services sector and instead should incentivise the kind of jobs that allow workers to achieve a decent standard of living.

Ireland now has the resources to ensure that Budget 2019 addresses the key challenges and social injustices facing Irish people. Priority should be given to tackling the social housing crisis, reforming the healthcare system and addressing rural and regional challenges with a special focus on resourcing communities.

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