ERSI slam 30% income tax rate
A new 30% income tax rate is not the best way to help middle-income workers, according to the ESRI.
The move is being considered as part of next month’s Budget, with Fine Gael in particular looking to shake up the tax system.
It would see a 30% rate added to the current tax system to ensure people don’t enter the highest rate of tax too early.
But Dr. Karina Doorley, research area co-ordinator at the ESRI, says other measures might be more effective:
“If the intention is to target middle income households here, a 30% tax rate, it’s probably not the most efficient way to do it because it also benefits high income tax taxpayers and in the current context of inflationary pressures and so on, that’s really not the priority. The priority should be low income households.”