Tax credits should be substantially increased and refundable to ensure low-paid employees benefit equally from the budget, according to CORI.
The Conference of Religious in Ireland Justice Commission said there was no gain for those in the lowest paid jobs in the income tax changes in this year's budget. "This is not an equitable situation. Government needs options in the income tax system to redress this situation," according to Father Seán Healy, of CORI.
The commision calls for tax credits to be refundable. In a taxation policy briefing document it points out that two-income or one-income couples across all income categories would equally benefit by €200.
These proposals are based on the existing tax system but CORI said that while it favours individualisation it believes the current process is "deeply flawed and unfair".
It says a basic income system would be a greater step towards genuine equality as "every person, not just those in receipt of a taxable income, would benefit equally from budget changes," according to Father Healy.
CORI also calls for the Government to look at the possibility of introducing a land rent tax which "could lead to substantial reductions in income tax". It has called for a public debate on how to balance levels of taxation with infrastructure and social provision.
It says that Ireland has a per capita income above the EU average, while its total tax take is below the EU average and its infrastructure and social provision are far below the EU average.
It questions how Ireland can have an EU level of infrastructure and social provision if tax-takes are "substantially below the EU level".
Among the recommendations are a call to:
- shift the burden of tax from income tax to eco-taxes on the consumption of water, fuel and fertilisers, as well as on waste disposal;
- target Ireland's total tax take at the EU average;
- increase the corporate tax rate in the medium-term;
- make family income supplement a part of the tax system;
- poverty-proof all budget tax packages.