Commission set up to assess how tax and welfare can support economy

A commission to independently consider how best the taxation and welfare systems can support economic activity and promote increased employment and prosperity has been established by the Government.

The Commission on Taxation and Welfare, which will be chaired by Prof Niamh Moloney, will also be charged with ensuring there are sufficient resources available to meet the costs of the public services and supports in the medium and longer term.

“The commission’s work will have regard to the principles of taxation and welfare policy outlined within the Programme for Government, including the Government’s commitment to a pro-enterprise policy framework,” the Government said in a statement.

This will be done in the context of “providing a stable and sustainable regulatory and tax environment”.

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Issues

It will also take account of issues such as the impact of the Covid-19 emergency, aging demographics, digital disruption and automation and the long-term strategic commitments of Government regarding health, housing and climate.

Members will be appointed to the commission in the coming weeks to bring the necessary expertise to fulfil its objectives in relevant areas including taxation, welfare, economics, legal and broader civil society.

"I am delighted today to announce the important work of the Commission on Taxation and Welfare will begin in the coming weeks," said Minister for Finance Paschal Donohoe.

“This independent work will ensure the sustainability of the public finances into the medium to longer term, and identify potential reforms to the tax and social welfare system so that the evolving needs of our society can continue to be met.

“I am particularly happy to appoint Prof Moloney to chair the commission. Prof Moloney’s considerable experience has greatly impressed me and will be put to good use on this seminal project.”

‘Social inclusion’

Minister for Social Protection Heather Humphreys said: "I strongly believe that employment is not only the best route out of poverty but is also the best path to social inclusion in its fullest sense.

“I want to make sure that when people cannot work they have access to a strong social welfare safety net. However, I also want to make sure that they don’t get caught up in this net – that employment pays.

“For that to be the case, the tax and welfare systems must work in a cohesive manner and maintain pace with changes in the nature of employment.

“I am very pleased, therefore, that the Commission on Taxation and Welfare is being established, I welcome the appointment of Prof Moloney and look forward to receiving the commission’s recommendations in due course.”