ISME, the Irish Small & Medium Enterprises Association, has called for reform of the VAT system, the introduction of a USC levy of 3% on PAYE incomes of over 100,000 and the introduction of auto-enrolement as soon as possible in Budget 2024.
Outlining its priorities for next week's Budget, ISME said it was conscious of not wishing to overheat the economy with a tax give-away.
"Our taxation proposals would ease the burden on workers earning around the average industrial wage, while at the same time increasing the Exchequer yield by approximately €300m in additional USC, and approximately €870m in addition PRSI contributions," ISME CEO Neil McDonnell said.
ISME is calling on the Finance Minister to reform VAT in line with European levels, establishing 21% as the standard rate with 9% as the reduced rate for all services. It also wants VAT on housing eliminated.
The business group wants to see a reduction in Captial Gains tax to a standard 25% rate, while it also wants to see a reform of property taxes with the introduction of a site valuation tax and road frontage tax.
It said that Budget 2024 should target the standard-rate cut-off point at the average industrial wage, while it also urges the introduction of "Solidarity Tax" (or USC levy) of 3% on PAYE incomes over €100,000.
The Finance Minister is also being asked by ISME not to narrow the tax base further by removing low earners from the tax, while it says that the entrepreneur relief lifetime threshold should be increased.
ISME said the R&D tax credit should be simplified while limitations on outsourcing in the R&D tax credit regime should be removed so as to increase collaboration among businesses, as well as between businesses and third-level institutions.
It also says that the Knowledge Development Box (KDB) should be simplfied while it would like to see reform of the Capital Acquisitions Tax to encourage the retention and scaling of family businesses.
On Social Protection measures, ISME today called for the introduction of auto-enrolment as soon as possible, but said the Minister should reconsider the 6% employer contribution.
It noted that this would be twice the size of the employer contribution in Northern Ireland.
In today's Budget submission, ISME said that auto-enrolment should become the basis for all pensions paid in the state, including public service employees, while it also called for the introduction of earnings-related social protection benefits.
It also said that the basic rate for qualifying for the medical card should be at more than 30% above the comparable Jobseeker's assistance rate.
ISME also said the Finance Minister should replace the child element in Jobseeker's payments and all other welfare schemes by almost doubling Child Benefit, phasing out Working Family Benefit, while at the same time making the Child Benefit taxable.
On training and development, ISME said that the pre-2016 supports for apprenticeships should be reinstated as should the training rate.
It is also urging that a Public Spending Commission to oversee infrastructure and HSE/Sláintecare spend be set up.
ISME represents more than 10,500 direct and affiliated SME businesses, which employ more than 245,000 people
