Tax body calls for cut in employers' PRSI

The Irish Taxation Institute (ITI) today called for employers' PRSI to be cut as part of a range of measures it says will help to stimulate the economy.

In a plan submitted to Finance Minister Brian Lenihan ahead of the April 7 emergency Budget, the ITI said that anything that could be done to stimulate the jobs market and assist employers would add greatly to tax revenue.

The Institute also called for income levies to be phased out, and for any future tax increases to be matched euro for euro with reductions in public expenditure.

"There is a tipping point for taxation beyond which the entrepreneurial drive to earn further profits is eroded," the ITI said in a statement. "Government must factor this into their decisions about direct tax increases."

The Institute called for the Government to work towards creating a "simple, sustainable tax system" for the year 2010 and beyond, advocating that tax levies - such as income levies, car park levies, second home levies, health levies, etc. - should be abolished and combined into income taxes.

"We fully recognise that Government needs to raise a significant amount of money to start clawing back the alarming deficit that has built up so rapidly," said ITI Chief Executive Mark Redmond.

"Our overriding message to Government is that a focus on maintaining jobs combined with simplicity, evidence of stimulus and a strategic long term plan for recovery are the things that will resonate best with all sectors, employees, public or private sector, employers and social partners, and will get everybody aligned in support of the changes required.”