Ireland 'takes smaller share' of tax than most European countries

The share of tax in national income in Ireland remains well below that in countries such as Germany and Austria, according to new research by the Economic and Social Research Institute (ESRI).

The economic think-tank found that Ireland takes a smaller share of national income in tax than most EU countries

The extra tax revenue in these countries comes from applying higher income tax rates lower down the income range, so that they are paid by low, middle and high income earners alike.

Research professor, Tim Callan, says there is much debate about the balance of taxes in the run up to the budget.

"It's clear from looking at (other) European countries that countries can have higher shares of tax to national income than Ireland has, and still operate very successfully.

"Germany, Denmark, Austria and Sweden would be doing that."