ESRI study: Minimum tax rate is not needed

A study by the Government's Economic and Social Research Institute has concluded that a minimum tax rate is not needed to ensure wealthy people make a fair contribution to society.

At present, many millionaires pay little or no tax in Ireland because of a range of tax reliefs and other schemes that allow them to keep most if not all of their earnings.

The situation has been widely criticised and has prompted calls for the introduction of a minimum tax rate to ensure the wealthy pay their fair share to society.

However, the ESRI study published today said a minimum tax was not needed because the same objective could be achieved by imposing restrictions on the tax reliefs causing the problem.

The study also calls for a completely new approach to the issue of tax incentives, which it said should be treated as a hidden form of Government expenditure.

It said all tax reliefs should have to meet the same criteria as normal spending proposals, while they should also be subject to regular cost-benefit analyses.