The Irish tax system analysed by Social Justice Ireland

Ireland needs more tax revenue

Social Justice Ireland (SJI) has suggested that Ireland needs additional tax revenue. They proposed that the Irish government should aim to add about £3 billion to tax revenue each year. Their reason is to ensure a fairer and more equal future for the Irish. An increase in tax revenue will deliver social infrastructures and other aspects that people want to progress.

The legitimacy of Ireland’s tax system is at stake

SJI says taxing has not been going well in Ireland. They caution that the very system could be compromised, seeing as how some rich entities are manipulating it to greatly reduce tax burdens for themselves. They also recommend poverty-proofing tax packages to ensure that the changes in taxation will not widen the gap between low and high-income populaces. The changes will also bring relief to those with minimum wages, by offering them reprieve from the taxation net. The idea is to collect appropriate taxes to ensure full participation society, and there is a fairer tax system where those with more pay more tax and those with less pay less tax.

Centrality of taxation

Experiences of the last ten years have demonstrated the centrality of taxes in deliberating budget, and also in developing policies for both macro and micro levels. Taxes are crucial to shaping Irish society as they fund public services, as well as economic support activities. SJI advocates the need for clarity when it comes to both the objectives and instruments aimed at achieving development goals in Ireland. As a way of making sure there is a fair and equal tax system, the policy developments should follow the core policy development of Ireland.

Where should government’s key policy be?

SJI recommends three areas that should be the government’s key focus. The first one is increasing overall tax take to 34.9 % of the nation’s GDP. The second priority would be broadening the tax base. The country has experienced an unstable and narrow national tax base for a long time, and that has had dramatic effects on overall tax revenue. Widening the tax base would broaden the tax take of the country. The third priority must be developing a fairer taxation system. SJI explains that it’s inequitable for people with high incomes to be able to claim tax reliefs at their top marginal income tax rates, while those with less income are restricted in claiming benefits for the same relief.

Tax should be used for national socioeconomic development

After many years of coping with crisis, SJI believes that it’s time to enforce tax reforms to improve the social infrastructure and economy of Ireland. They call for an increase in the country’s tax take to fund national economic and social development projects. The taxes should be used to improve quality of life for the Irish.

Ireland should support the introduction of Financial Transactions Tax

Though SJI admits that increasing the tax take is politically toxic, they recommend different ways implement an increase in tax revenue. They propose that Ireland join other EU members in adopting the Financial Transactions Tax which the country has vehemently opposed in the past.