Ibec advises Coalition to cut income tax but no return to social partnership

Employers’ group Ibec has called on the Government to reduce income tax in next October’s budget.

Moreover, there should not be a return to social partnership agreements in order to negotiate wage increases over the next year, it said. An increase in consumer spending had to be achieved through reducing the tax burden, it added.

“The tax burden is too high and the negative impact on the wider economy too great. Income tax rates are out of line and are a disincentive to work, consumption and job creation. If we want to stop our young people from emigrating, and attract talent and investment to the country we need to act,” said Ibec CEO Danny McCoy.