FF to unveil proposals for tax reform within weeks
Enterprise, Trade and Employment Minister Micheál Martin said tax cuts over the past few years had dramatic results that benefited the economy hugely.
He indicated there was sufficient heat in the economy and money in the system to justify a reduction in tax.
The PDs and the Labour party have both proposed changes in income tax leading to accusations of auction politics ahead of the general election expected to be held in May.
Mr Martin said high economic growth looked set to continue at least until the end of the decade at about 4% to 5% a year, and this year had seen significant budget surplus.
“We have money for tax reform and for investment. The Taoiseach will prioritise how the money will be spent,” the minister said.
Tax changes will be proposed as part of a comprehensive package Fianna Fáil will put forward in their election manifesto, he said. It will be unveiled at their Árd Fheis in five weeks.
The past decade of reduced personal and corporation tax had dramatic results, doubling the number employed and creating over half a million new jobs in services and manufacturing.
Ireland has been named as the second most pro-jobs economy in the world next to South Korea because of its tax policies.
To sustain jobs and maintain growth the country now needs to invest money in creating its own jobs in indigenous industry through investing in research, up-skilling people and developing small and medium enterprises especially, Mr Martin said.
Fianna Fáil’s coalition partners, the PDs, announced over the weekend plans to cut the standard and higher tax rates to 18% and 38% respectively during the lifetime of the next government; take a single person earning up to €50,000 out of the top rate; and to expand the 20% rate much further than the rate of inflation.
The Labour Party said they would reduce the 20% standard tax rate by 2% within two years.
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