Varadkar wants higher rate of income tax changed

A Cabinet minister has said Ireland needs to raise its tax bands in order to stop workers from emigrating.

Leo Varadkar said the higher rate of income tax kicks in far too early in Ireland and encourages a "brain drain".

It follows a study released last week by UCC which found that almost two thirds of emigrants have a third level qualification.

The study also found that Ireland has some of the highest levels of emigration among European countries hit by the Eurozone crisis.

The Tourism Minister said that, while career prospects will encourage people to emigrate, Ireland's tax system does not do enough to get them to stay.

He admitted the problem cannot be tackled immediately, but needs to be addressed.

He said: "Where I'd start is the fact that people on pretty modest incomes of around €35,000 a year hit the highest rate of tax, 52%. That is not normal in most countries.

"In Britain, for example, you need to be earning close to €100,000 before you hit the highest rate of tax. So that is where I'd start, but it's way too premature for that at this stage."