Sir, – With the new income tax break, contained in the Finance Bill 2012, for foreign executives who can create employment in Irish-based companies (Business Today, February 9th), the Government has now accepted that our high marginal tax rate of 52 per cent dissuades investment, work and effort.
This begs the important question: why does the Government not reduce the marginal tax rate for indigenous Irish workers and job creators who must pay, not including other taxes, 52 per cent on their marginal income (55 per cent if you are self-employed)? Ireland, in its struggle to re-emerge from the depths of recession, needs a taxation system that truly rewards work and effort.
Irish job creators must be allowed to keep more of what they earn so that they can hire more staff, purchase more equipment and reinvest in their businesses.
Minister for Finance Michael Noonan must take heed by bringing the effective marginal rate of income tax back to 41 per cent, and then proceed from there to make it lower and more competitive. – Yours, etc,