A paper published by NCN Stockbrokers economist Eunan King today says the average tax burden has remained unchanged through the 1990s despite income tax reforms.
NCB's senior economist also argues that a decrease in tax rates is needed in the Budget to keep the tax burden from rising, and that this will not adversely affect Irish inflation
Mr. King's report says the average proportion of income paid in tax has stayed at around 21% through the decade. He says cuts of £750m would be needed to offset the tendency for average tax rates to rise in a progressive tax system.
Referring to efforts to attract immigrants, the report says a UK resident earning £24,000 sterling a year would face a 13-point jump in the average tax rate on coming to Ireland.
On housing, it says the degree to which the distribution of income is skewed towards the top 20% of earners, and not the average industrial wage, is the bellwether for the sustainability of the housing market.
