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Kenny signals income tax changes
19 Sep 2014 14:02
The Government sees reducing the 52% marginal tax rate on income as its next priority, according to Taoiseach Enda Kenny.
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Speaking at an event held by business group Ibec, Mr Kenny said the Government had agreed to lessen the tax burden on the incomes of low and middle income earners.
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He said he saw the 52% rate, which includes income tax, PRSI and the Universal Social Charge, as "anti-enterprise, anti-investment and anti-jobs".
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"It is damaging not alone our businesses, our workers and their families and their lives; it is equally damaging to our country's attractiveness as a location for foreign investors," Mr Kenny said.
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He added that the rate was also acting as a disincentive to emigrants thinking of returning to the country as the economic recovery gets under way.
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Mr Kenny's comments came after the Minister for Finance Michael Noonan again upgraded growth forecasts for the year on the back of better-than-expected GDP figures in the second quarter.
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Mr Noonan said the economy could now grow by as much as 4.5% in 2014 – up from the 3% forecast he made last week and the 2.4% estimate given in April.
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The figures mean that the Government is now expecting to get the deficit below 3% of GDP without having to undertake any further cuts or tax increases in Budget 2015.
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Speaking on RTÉ's Six One News yesterday, Mr Noonan also indicated changes in the income tax system to make it more attractive to workers.
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He particularly pointed to a more favourable system in place in Britain, where a large number of Irish people had moved in recent years in order to find work.
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