State urged to scrap tax cuts

The Government has been urged to scrap plans to cut taxes in next month’s Budget, with one economic think-tank saying it risks widening the gap between rich and poor.

The left-leaning Nevin Economic Research Institute (NERI) wants the Government to instead focus on supporting long-term growth objectives such as education and infrastructure for long-term growth.

“Tax cuts won’t grow the economy in the long-run and are, in general, likely to increase the wealth and income divide,” the think-tank has said in its latest economic outlook, due to be published this morning.