60% of taxpayers favour cuts to public spending over increased taxes 

A survey carried out by Taxback.com found that 45% said a wealth tax should be introduced for higher earners. File picture.

60% of people favour cuts to public spending over increased taxes, according to recent figures.

Taxback.com surveyed 2,100 Irish taxpayers ahead of next week's budget. They found that only 5% of people wanted to see an increase in tax on savings, while 45% said a wealth tax should be introduced for higher earners. Of the respondents who were asked the same question in 2017, 87% of people said they were in favour of a wealth tax.

Commenting on the findings, Consumer Tax Manager Marian Ryan said "Wealth is highly concentrated in this country – with 73% of the country’s wealth being owned by the most affluent 20%. 

"But would it have the unintended consequences of removing money from our economy if we lessen the disposable income of the wealthy? The top 1% of earners paid almost 25% of the income tax collected. The top 6% of income earners – those households with income over €100,000 per year - paid €11 billion in income tax in 2017. This figure is over half of the record high total of €22 billion that was collected.”

"The trouble with a wealth tax is how to decide on a threshold - what factors make up someone’s wealth? Introducing a wealth tax has been mooted for years – with certain political entities loudly voicing their support, while other contributors have suggested it could actually have negative repercussions on Ireland’s ability to attract FDI and talent," Ms Ryan added. 

Less than 5% of respondents wanted to see an increase in Stamp Duty, motor tax or tax on pensions. 

A fifth of people surveyed said less money should be allocated to social welfare and a further 11% said cut backs need to be made on capital invested in public infrastructure.