CORI: Govt should raise taxes on rich

The Conference of Religious in Ireland has called on the Government to raise taxes on the wealthy in order to address the growing gap between the rich and poor.

In a review published today, CORI said Ireland’s low-tax policies were largely responsible for the widening of this gap over the past number of years.

It also said Ireland’s low revenue from taxation was starving the poor of better health, education and social welfare.

CORI said a recent OECD report showed that the Irish Exchequer collected less tax as a proportion of GDP than any other EU country in 2002.

Ireland’s tax revenue in 2002 was 28% of GDP, compared to more than 50% in Sweden.

CORI said this had led to a situation where the Irish spend on social provision was little more than half the EU average.

In order to address the problem, it said, the Government should raise corporation tax from 12.5% to 17.5%, should end tax breaks for stud farm owners and other wealthy individuals and should provide tax relief at 20% where it is currently being provided at 42%.