Tasc bemoans 'budget of missed opportunities'

Independent think-tank Tasc has criticised what it called a 'budget of missed opportunities'.

TASC Director Nat O’Connor said that, while some measures were to be welcomed, overall the choices made would increase inequality while failing to put Ireland on the road to job creation and economic recovery.

“Although TASC welcomes measures such as the decision to rebalance USC to make it more progressive, as well as the decision to levy PRSI on passive income, the Government has missed an opportunity in its first Budget to break with the failed economic strategy of the last administration," said Mr O'Connor.

"In particular, we are concerned at an apparent reliance on new property tax breaks rather than a programme of strategic investment to support economic activity."

The left-wing organisation criticised the fact that the Government has chosen to focus the bulk of its new tax take on increasing VAT "despite compelling evidence that consumption taxes are not only highly regressive, but are also damaging to economic growth".

Tasc also said the imposition of a flat rate property charge, rather than a progressive tax, was "the wrong choice".

“The impact of this Budget on social welfare recipients and low earners will have severe consequences not only for the households concerned, but also for the economy as a whole," Mr O'Connor said.

"These measures will take more money out of the pockets of those who spend most of their incomes in the domestic economy and will simply exacerbate the crisis in demand."