Social Justice Ireland says austerity not working - Budget submissionMonday 24 June 2013 17.00
Social Justice Ireland has called for an end to expenditure cuts, more investment and radical changes to taxation in its pre-budget submission today.
The group called for a minimum ''effective'' corporation tax rate of 6%, which would see no company paying less than 6% of their profits in corporation tax.
It also urged the Government to introduce a maximum effective income tax rate of 45% where no one would pay more than 45% of their earnings in income tax, social insurance and the universal social charge.
The introduction of a tax of one third of one cent on each text sent by SMS through mobile phones or any other devices would provide an additional €35m in taxation revenue next year, Social Justice Ireland said, while a ''bad nutrition’' tax on the main components of junk food, fast food and soft drinks could yield €15m in 2014.
“Austerity is not working for Ireland. Government has cut spending, raised taxes, increased unemployment, lowered wages, decimated services and allowed infrastructure to deteriorate on the understanding that austerity would lead to recovery'', commented Dr Sean Healy at a briefing to launch the submission today.
“Austerity, however, has been exposed as having an unsound academic basis, as being a failure in practice and as morally unethical because poor and middle-income people have borne an unfair share of its consequences,'' he added.