ESRI urges Govt to leave PRSI untouched in Budget

The ESRI has cautioned the Government against increasing PRSI contributions in the Budget.

The research institute said the move, which is being pursued by the Social Protection Minister Joan Burton, could damage job prospects.

The ESRI also raised concerns about any increase in income tax. Instead, it recommended that the property tax be implemented.

The ESRI says it should be possible to make savings while protecting employment, guaranteeing that income tax and welfare rates will not change and ensuring the Croke Park Agreement is honoured in full.

ESRI research professor John Fitzgerald said: "(Raising PRSI) would not be good for employment, whereas raising the same revenue through carbon taxes and property taxes are less unfriendly to employment."