THE MINISTER FOR Jobs has described high rates of income tax that hit people at a very low rate of income as a “handicap” to investment in Ireland.
Minister Richard Bruton made the comments while speaking on RTÉ’s Week in Politics programme earlier today.
He said that from his perspective – the employment perspective – “there is no doubt that it is a handicap to investment, to bringing back emigrants, to have a very high rate of tax hitting in at a very low rate of income”.
The Minister was commenting following a report in the Sunday Times today that said that Taoiseach Enda Kenny is looking for a 1% cut in the top tax rate.
This would bring the 41% income tax rate to 40%. “He said he wants to see tax reforms to encourage investment,” said Bruton of the Taoiseach.
Speaking to IBEC last week, Kenny also said:
Building on the cut to the VAT rate for the tourism sector and the tax measures that have led to recovery in the property and construction sectors, the Government has agreed that the next priority in this regard is to reduce the 52% income tax rate on low- and middle-income earners.
He described the 52% marginal tax rate, comprising income tax, PRSI and the Universal Social Charge, as “anti-enterprise, anti-investment and anti-jobs”.
It is damaging not alone our businesses, our workers and their families, it is equally damaging to Ireland’s attractiveness as a location for foreign investors. I believe it will make it harder to get our emigrants to come back home as the recovery continues.
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