Economist: ‘Low’ tax rates to blame for Ireland’s deficit crisis

If tax on Irish workers was increased to the EU average, the Government would not have to borrow to run the state each year, a thinktank claims.

Irish workers pay one third less in taxes, including social security contributions, than the average person in the EU, ranking it the fifth lowest of the 27 countries.

The greatest difference is in the level of social security contributions, which are among the smallest in the EU and account for just over 20% of the tax take compared to close to an average of one third overall.