Raise money through property tax, not income tax, urges money expert

A leading economic expert has said the Government should generate money through a property tax rather than through hiking income tax in next week's Budget.

Tue, 27 Nov, 2012 - 10:52

A leading economic expert has said the Government should generate money through a property tax rather than through hiking income tax in next week's Budget.

Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin will reveal their plans next Wednesday to save €3.5bn in cuts and taxes.

This morning, there is speculation that the Government will seek to save money through a

Research professor with the ESRI John Fitzgerald said property and carbon taxes would be better revenue-raising choices for the Government.

"Taxes on income (whether it's the Universal Social Charge or income tax) tend to be job-unfriendly," he said.

"They discourage people from working (and) make it difficult for people to work. Property tax and carbon taxes are likely to be much less damaging to employment."