Sir, – Pat O'Brien is right; current government expenditures cannot continue to be financed from borrowing indefinitely (Letters. December 4th).
But to suggest that those on middle incomes will in some way have to pay in future through increased taxation is to miss another emerging, global trend.
Wealth inequality is distorting our global finances. A very small group of people in the world own enormous amounts of wealth in the form of land, property, stocks, companies, loans, raw materials and other forms of wealth, and an extremely large group own zero or very little wealth.
The first group largely sits back as their assets generate income, while the second, and much larger group, is forced to work to generate income to keep a roof over their heads and food in their refrigerators.
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Taxing the latter with more levies on their incomes and expenditures makes no sense and only increases inequality. New forms of taxation such as a financial services transaction tax and a minimum effective rate of taxation for companies are but two ways that the EU is considering to shore up government finances and reduce the corrosive effects of wealth inequality.
I suspect Irish governments will have to follow this trend if they want to hold power in the future. – Yours, etc,
TOM McELLIGOTT,
Tournageehy,
Listowel,
Co Kerry.