TAOISEACH ENDA KENNY this evening told business leaders that Tuesday’s Budget would be the “first step” towards lowering the highest income tax rate.
In a speech at the Dublin Chamber of Commerce Annual Dinner tonight, Kenny said the previous Fianna Fáil-led government’s introduction of the 52% rate was “anti-employment and anti-enterprise.”
Next week’s budget will be the first step of a multi-annual plan to reduce the 52% rate on low and middle-incomes.
It will improve the competitiveness of our tax regime in a way that strengthens the economic recovery.
An “easing of the burden” on ‘middle Ireland’ has been hinted at by government ministers in previous weeks.
This evening’s statement from the Taoiseach, however, suggests it will come in the former of lowering the top tax rate, rather than an adjustment of tax bands.
Kenny did not specify which of the three components of the 52% rate – income tax, PRSI and the universal social charge – would be affected.
Joined on the stage by former Manchester United football manager Alex Ferguson, Kenny also firmly committed to keeping the 12.5% corporate tax rate.
As international tax loopholes progressively get closed down, our low general corporation tax rate will become even more attractive to business.
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