Lower paid would be hit if State were to raise taxes

Ireland is not a low-income tax economy and collects more income tax relative to the size of the economy compared to many of our EU peers.

There have been many calls to raise income tax in Ireland to levels in other countries. What these suggestions fail to acknowledge is how these countries raise more income tax than us. They do so by levying significantly more taxes on low and middle incomes than we do.

It is a common refrain that Ireland is a low-tax economy. This is not true. In 2011, the EU average for tax receipts as a percentage of gross domestic product (GDP) was 26%. The figure in Ireland was 24%, and using gross national product (GNP), which may be a more appropriate measure for Ireland, the figure is 28%. Ireland does not collect a low amount of taxes.