SIPTU: Dropping tax increases will 'insulate the rich'

IBEC's call for no tax increases in next year's Budget will only "insulate the rich", SIPTU warned today.

SIPTU: Dropping tax increases will 'insulate the rich'

IBEC's call for no tax increases in next year's Budget will only "insulate the rich", SIPTU warned today.

The Irish Business and Employers Confederation will launch their budget submission for 2014 today.

IBEC says that the Government should drop the €500m of planned tax hikes and are calling for new measures to rebuild consumer confidence and to support job creation.

However, in a statement this morning, the SIPTU president says if wealthy people contributed more in taxes, the burden of austerity could be eased on the majority of citizens.

SIPTU general president Jack O'Connor said that the Government's austerity plans are not working.

Mr O’Connor said the group’s submission was “a wolf in sheep’s clothing”.

“This is nothing more than a thinly camouflaged attempt to insulate the better off from tax commitments that are already scheduled, while inflicting more misery on the less well off,” he said.

“Ibec is right in one respect, it is time to ease off on austerity. However, it is also time for the rich to contribute something.”

Figures released last month showed Ireland officially dipped back into recession after the Government’s export-led recovery took a hammering.

The Government will announce spending cuts and tax adjustments to the tune of €3.1bn for the 2014 Budget on October 15.

Mr O’Connor said there should be no change on commitments that tax relief on pension contributions would be limited in order to build pensions of up to €60,000 a year. He said it would bring in €250m a year.

“We can actually get to the 3% deficit target by the end of 2015 without inflicting more misery on the great majority of our citizens, although those at the top of the incomes spectrum will have to contribute a billion euro in extra taxes over two budgets to enable this to happen,” he said.

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