Social Justice Ireland urges hike in corporate tax rate

An additional €1 billion could be raised in the next budget by introducing an effective corporate tax rate of nine per cent, Social Justice Ireland has said.

The think-thank and justice advocacy group said the tax rate should be introduced if the adjustment in public finances comes to €2 billion.

“While Ireland’s corporate tax rate is 12.5 per cent, this level of tax on profits is not paid by multi-national companies,’’ it adds.

“The recent attention given to the abuses of the international corporate tax system, whereby some highly profitable multinationals are paying very small amounts of taxes on profits, strengthens the need to address effective corporate tax rates.’’

The proposal is made in a comprehensive series of budget options published in Dublin today.

Director Dr Sean Healy said that to date, the Government's approach had protected the rich at the expense of the rest of society.

“There is an urgent need to address the regressive nature of each of the budgets introduced by the current Government since they came into office in 2011,’’ he added.

The group also proposes an increase in the PAYE tax credit and welfare rates by €5 a week, prioritising investment in social housing and disability services, providing broadband in all rural areas, and the reduction of borrowing below three per cent of GDP in 2015.