Ireland’s tax system outdated, says Gurdgiev
“Our economy will continue to struggle until we transfer the tax burden away from income. The tax burden on income has rocketed from close to 29% in 2007 to 40.55% in 2011,” he said. He believes that increasing income taxes inevitably leads to leakage from the tax system as it forces businesses, entrepreneurs and the self-employed to either move offshore or into the black and grey economy.
He was speaking at Ireland’s Crises: The Way Forward breakfast briefing in Waterford hosted by accountancy firm, MK Brazil. “It isn’t feasible to continue to increase the tax burden on a diminishing number of taxpayers. In addition, reduced earnings have had a domino effect, stifling productivity and motivation, reducing consumption, reducing long- term savings, and diminishing the potential investment pool,” he said.
