Call for fairer tax system

A proposal to introduce a more equitable tax system in Ireland would close the “tax exile loophole” by making citizenship, not residency the basis for taxation, a new tax reform movement suggested this morning.

Umbrella organisation Community Platform today began its campaign by introducing a four-point plan that its said would raise €3 billion in taxation and help mitigate Government spending cuts in the upcoming Budget.

It proposed that tax breaks be reduced to the EU average over a three year period, saving an estimated €1.5 billion a year; that a wealth tax be introduced for high earners with assets of more than €1 million; that people be taxed on the basis of citizenship not just residency and that PRSI and income levies be charged on all sources of income, not just wages.

The organisation said the tax system in Ireland was unjust and must be fixed.

Spokeswoman Anne Costello said a progressive tax system would mean there would be no need to cut capital spending. It would provide for vital services, retain jobs and support consumer demand, she said.

“It will avoid the potential disaster that draining another €3 billion out of the economy will have on businesses, communities and the self-employed throughout the country,” she said.

She said the current path of spending cuts the Government is on would result in persistent unemployment, economic stagnation and an assault on the fabric of communities.

“There is a real viable alternative – an alternative that promotes consumer demand, stimulates economic activity and is sustainable and progressive,” Ms Costello said.

Budget 2011 had to bring new hope and new vision to Ireland and the organisation’s proposals, if adopted, would “begin the journey to social and economic recovery”.

Launching the proposals, Barnardos chief executive Fergus Finlay said they were an important contribution to an important debate that the country needed to have over the next couple of months.

Last year's cuts in child benefit, support for unemployed people, people with disabilities and carers all caused “immense hardship” and did “absolutely nothing to turn the economy around”, he said.

“There has to be a better way."