Renua’s flat tax policy takes hit

Renua Ireland leader Lucinda Creighton’s 23% flat tax policies lay in tatters just hours after she launched her party’s manifesto.

It emerged that the Revenue Commissioners have said a flat tax rate of double that would be needed to replace all PAYE and USC income. It was confirmed that to deliver the same income for the State, while exempting salaries under €15,000, a flat tax rate of 46% would be necessary. The Revenue figures were contained in a reply from Finance Minister Michael Noonan to a parliamentary question.

Last October’s budget projected income tax (including USC) of €19.16bn for 2016, suggesting Renua’s flat tax would see a €9.5bn shortfall in the State’s coffers. Renua insisted any gap in the Exchequer figures would be recouped by a stimulus effect, while the flat tax would “damage the black market”.