The abolition of property-related tax reliefs would raise up to €2 billion, some of which could be used to encourage the development of indigenous industries, the Green Party said today.
Unveiling the party's pre-Budget submission, party leader Mr Trevor Sargent said the economy was vulnerable to competition from countries such as India because of our reliance on foreign direct investment.
He said tax relief for research and development was essential for the development of the knowledge-based economy needed to secure the State's economic future.
Greater incentives should also be put in place to encourage organic agriculture and other "green industries", such as renewable fuels and recycling schemes, as part of a package of measures to make the economy more environmentally friendly while staying competitive.
Mr Sargent said policy should be geared towards more economic security and more equal opportunities to address inequality and the growing gap between rich and poor.
Mr Sargent said: "We're not here to reinvent the wheel. Other countries where Greens have been in government like Finland - where they've been re-elected to government - are for a third year out four at the very top for international competitiveness and at the very top in terms of their keen green credentials as well."
"[The Government] has made us more and more dependent on property speculation in terms of wealth generation and indeed on imported fuel which . . . is becoming more and more difficult to guarantee making ourselves a country which is more and more vulnerable".
He criticised the decision not to introduce a carbon tax, saying the policy contradicted the views of the ESRI and the Environmental Protection Agency.
Enterprise Trade and Employment spokesman, Mr Eamon Ryan said revenue generated by a carbon tax could be returned to the public through lower VAT and PRSI rates and increased social welfare payments.
"Carbon tax should not be seen as an extra tax but as a very effective way of changing fuel consumption patterns and of encouraging energy efficiency," he said.
The party also said changes needed to be made to the income tax system to address growing inequality.
Finance spokesman Mr Dan Boyle said in the case of low earners not earning enough to fully avail of tax credits, outstanding entitlements should be paid directly.
He also called for intermediary rates of 10 per cent and 30 per cent on the first €1,000 earned within the 20 per cent and 42 per cent bands respectively.
To address the issue of very high earners paying little or no tax, Mr Boyle proposed limiting relief entitlements to €200,000 while imposing a minimum tax payment of 20 per cent of income.
People who make income in Ireland while living abroad should also be liable to income tax, Mr Boyle said.
Other Green Party proposals:
Replace commercial rates with site value tax with extra revenue directed to funding local government
€15 increase in basic social welfare payment
Increase Capital Gains Tax from 20 to 25 per cent
End tax relief for bloodstock industry
An €25 increase in child benefit
Widen medical card eligibility