Costs may limit scope for personal tax cuts

The Irish exchequer raises large amounts of tax from income and USC but personal tax cuts may mean few windfalls, figures from the Irish Tax Institute show.

In a pre-budget analysis, the institute focuses on Ireland’s “high-risk tax base” that relies on taxes on labour and multinationals.

Taxes on labour means the exchequer will likely raise €16.5bn in income taxes this year; €3.7bn from USC; and an additional €9.6bn from PRSI.