Economy has ‘limited tax ability’

The economy has very limited ability to generate the additional taxes needed to achieve the €3.5 billion in fiscal consolidation agreed with the troika for December’s budget, says the Irish Tax Institute in its pre-budget submission.

“Imposing new and additional taxes on taxpayers cannot be done without consequences,” says institute president Martin Phelan.

“Those contributing to the tax system have less disposable income than in 2008 and will have less again following any further tax increases. Such increases will really be an element of replacing one tax with another.”