Government should not cut USC tax, Siptu says

Siptu President Jack O’Connor says that talk of tax cutting should be deferred in favour of better public expenditure and addressing the housing crisis.

He was commenting following the government’s announcement in the Economic Summer Statement that it plans to get rid of USC tax over the next five budgets.

“Our basic contention is that public expenditure should grow at a rate not less than GDP.

“All benefits from recovery should go towards higher standards in public expenditure.”

The government should not spend less, he said. There is an incentive to get a new version of the fiscal rules, to persuade the EU to re-interpret the rules to allow for more flexibility.

“If we can achieve better results we should focus on addressing housing needs and supports, a free health service, better child care.

“That will mean a lot more than tax cuts.”

Mr O’Connor said that the current tax system disproportionately benefits the better off.

He said that the austerity cuts imposed on Ireland through the IMF had "ravaged" Irish society and that the majority of people, if given a choice of tackling the housing crisis, would opt for that over tax cuts.

He added that he was very concerned about Brexit.

“This is the most crucial decision by the people of the UK since the War. It will have a huge impact for Ireland.”