Feedback
Our interaction with members through our online survey and our regional meetings over the past few weeks highlighted many excellent ideas and comments on what future tax policy in Ireland should be. We would like to highlight some of these initiatives on this webpage and we will be updating this page on an ongoing basis:
Taxes on Income
“Increase the income levy as the primary means of increasing the "tax-take" from higher earners. The levy has a perception of being a temporary measure, thus can be easily removed in the future / better times. The standard and higher rate should be increased by at least 1% (I would favour an increase of 2% in both rates - in addition to an increase in the levy).”
“The income levy should be abolished at the end of 2009 - if not sooner. It places a further administration burden on employers, who are already creaking under the pressure.”
Control Public Expenditure
“…in the short term the entire world is in recession and the best we can do in control current expenditure and not run a current deficit in order to come out of this in the best shape possible. Capital expenditure and infrastructure projects should be ramped up as a stimulus package and this would have the greatest impact on employment.”
Job Retention
“A tax credit for maintaining and creating employment should be introduced. Businesses that take on new employees should be credited making it cheaper for them to do so, and the costs of the project would be offset by any social welfare benefits said employee would have been claiming. Similarly those that have employees should get a break in the short term to enable them to retain those employees. Alternatively social welfare benefits that would be paid to an individual should be paid to an employer who takes someone of the dole for a period of six months.”
Stimulating the Economy
“I feel that the introduction of a scheme to incentivise private sector investment in infrastructure projects should be introduced whereby allowances in excess of cost are available to resident private investor consortiums who undertake pre-identified infrastructure projects. The removal of the burden from state hands of the necessity to undertake these projects will result in a significantly reduced budget for Capital spending while creating significant employment. In addition the requirement that the consortium be comprised of tax resident individuals ensures that contracts are not awarded to foreign bodies.”
“Further R&D incentives - give benefit against Payroll taxes, including genuine incentives to boost green energy production - to reduce everyone's energy costs.”
Pension Relief
"At a time where pension funds are going to be significantly lower as a result of the conditions in the markets the last thing to do would be to encourage people to reduce pension contributions by introducing such a measure. If anything people should be looking to bolster contributions to offset losses suffered during the last 18 months.”
“The Government has addressed this issue in recent times by introducing the cap on pension values and also reducing the amounts eligible for relief in the last budget. A further reduction will push people into seeking other means of reducing their tax burden. It would significantly reduce the amount of money going into personal pensions, which will have a future impact as the State will have to provide more pension support into the future. This is even more critical as the pensions reserve fund is now being used to deal with current difficulties.”
BES/Seed Capital
“Seed Capital Relief & BES need to be simplified & expanded to any business that creates employment.”
“BES and Seed Capital could be widened and simplified to encourage those with money to put some of this back into the economy.”