Increase total tax take, says CORI

THE Government is being urged to raise the total tax take in the upcoming Budget and bring it closer to the EU average.

Ireland props up the bottom of the EU league on total tax take - and the CORI Justice Commission argues this is reflected in our below-standard infrastructure and social provision.

Urging a fairer level of taxation, it stresses it does not advocate that Finance Minister Charlie McCreevy pushes up income tax in the Budget next December. Its main argument is that the Government’s total tax taken should go up as a percentage of Gross Domestic Product, which measures economic growth.

Total tax and social insurance revenue in Ireland is equal to 27.7% of GDP - compared with the 41.4% EU average.

The Budget should focus on Ireland’s widening gap between rich and poor, one of the worst in the EU.

“The gap between an unemployed person, and a person on €50,000 a year, has widened by €276 a week over the past six years as a result of Government decisions,” CORI said.

Citing problems of growing housing waiting lists, a two-tier healthcare system, and persistent educational disadvantage for large numbers of poor people, the Justice Commission says the resources exist but have been given, primarily, to the better off in recent years.

“A society is measured by how it treats its most vulnerable people. By this measurement Ireland is failing dismally. The majority of Irish people want a fairer, more just society. Budget 2004 should, consequently, prioritise decisions aimed at producing a more just and fair society.”

The Justice Commission insists all its proposals are made within a responsible fiscal stance, and can be funded from available resources.

“Those who have benefited the least from the economic growth of recent years should not bear the brunt of the budgetary problems produced by this Government’s imprudent management of resources in the years of plenty,” it said.

“Ireland’s poorest people have been effectively excluded from what is required to live life with dignity. This is unjust, unfair, and unacceptable.”

The Justice Commission proposes that corporate tax should go up to 17.5%, and that capital gains, wealth and eco taxes also rise. Social welfare should go up by €12 a week (single person) and €20 (couple), and asylum seekers’ weekly allowance should rise.