IBEC: Overhaul tax and welfare

IBEC has called for “a major overhaul” of the tax and social welfare systems in the budget, saying there is no need for the adjustment to exceed the already well-flagged €3.6 billion mark.

“Benefits need to be targeted at those who need them most and the entire system redesigned to incentivise work. There should be no more income tax rises, taxes on business, or VAT hikes. Global economic headwinds remain, but Ireland has come a long way.

“All budgetary measures must be judged on their impact on the domestic economy. Only then will more normal spending and saving patterns resume,” IBEC director general Danny McCoy said yesterday at the launch of the body’s pre-budget submission.