You are here

Taxation

Despite low overall levels of taxation, and low effective income taxation rates, reductions in income taxation levels continue to be highlighted as a potential policy reform. Social Justice Ireland has undertaken this study to examine, from the perspective of fairness, various reform choices. As a minimum, the analysis highlights the distributive impact taxation policy choices can have and the potential policy has to pursue both fair and unfair outcomes.

There will be nearly 1 million people aged 65 and over by 2031 – an increase of 86.4 per cent.  Of these 136,000 will be aged 85 or over by 2031, an increase of 132.8 per cent.  Now is the time to plan Ireland’s investment in services and infrastructure. This is one of the key issues highlighted in the National Social Monitor 2016.

The National Social Monitor is Social Justice Ireland’s annual contribution to the public debate that is needed on Ireland’s future and how Ireland is performing in terms of promoting the wellbeing of all in society. 

Without the social welfare system almost 50 per cent of the Irish population would have been living in poverty in 2014.  Adequate social welfare payments are required to prevent an increase in poverty.  Between 2010 and early 2016 inflation was 3.44 per cent - implying that a buying power of €188 in 2010 was equivalent to €194.50 by February 2016. 

Government should spend €1bn fiscal space on infrastructure to improve productivity and competitiveness in Budget 2017.  This would be a far better use of resources than giving tax cuts as incentives to attract ‘Brexit refugees’ from the City of London to Dublin.  Investment is crucial to addressing Ireland’s infrastructure deficits and to delivering a vibrant, productive, competitive and sustainable economy and a just society.  Investment is the cornerstone of our policy briefing Budget Choices 2017.

Budget Choices 2017 outlines Social Justice Ireland's comprehensive proposals and policies and policies that can deliver a vibrant economy, a just society and a sustainable future.

The Knowledge Development Box (KDB) policy now being considered by the Department of Finance is proposing to offer preferential effective tax rate(s) to income generated from intellectual property and patents under the premise of nurturing innovation, encouraging companies to locate high-value jobs in Ireland, and promoting economic growth.

A brief snapshot of taxation trends in Ireland and some policy proposals.

Ireland, with a tax take of 31.1% of GDP (in 2014), is defined as a low-tax economy by Eurostat. This is part of the reason why our services and infrastructure do not measure up to European standards.  Any decision to raise or reduce Ireland’s overall taxation revenue should be linked to demands on government resources.

Pages