Government should raise tax rate, says ESRI

IRELAND needs to raise its top rate of tax to 53c if we are to tackle the huge number of people at risk of poverty and bring our social welfare system in line with the best in Europe, an Economic and Social Research Institute (ESRI) study revealed yesterday.

But the Government ruled out such an increase in the upcoming Budget yesterday, with Social Welfare Minister Mary Coughlan saying it would cost €2.4 billion and be “self-defeating” because it would weaken our competitiveness.

The ESRI study found that Ireland has the highest number of people at risk of poverty within the EU - 21% - compared to the average of 15%. The yardstick for measuring those at risk of poverty here is anyone living on or below €14,000 - half the average industrial wage.