Fiscal Council report show mistakes of the past are being repeated – Pearse Doherty TD
Sinn Féin Finance Spokesperson Pearse Doherty TD has said today’s report by the Fiscal Council underscores again how the government are making the mistakes of the past in reducing taxes and relying on unsustainable corporation tax receipts to pay for public services.
Deputy Doherty said:
“Another day, another warning that the government is making the same old mistakes of years gone by. I have consistently pointed out that Corporation Tax receipts may have recently surged but there is great doubt as to how permanent that increase is. We know too that within that surge is a huge concentration on a small number of companies with the ten biggest companies now paying 40% of the total Corporation Tax take. Corporation tax payments from the top ten companies are now the equivalent of what stamp duty was in 2007. All the signs of a dangerous over-reliance on Corporation tax are there.
“Likewise the reckless cutting of solid tax streams like the USC while our public services and capital infrastructure require spending is a recipe for disaster.
"The report is littered with warnings about Brexit, optimistic medium- term forecasts as well as the warnings about tax I have consistently been drawing attention to. It confirms that much of next year’s fiscal space has already been spent by this year’s Budget.
"The Fiscal Rules are becoming, as Sinn Féin said they would, an anchor on the potential for Ireland to develop its economy in a fair and sustainable way. They have narrowed our choice significantly but the immediate problem as pointed to again today is that even within that narrowed choice the wrong options are being taken time after time.
“The public pay pressures that are now increasing, the threat of Brexit and a general slowing down of growth all point to the need for spending and investment to be prioritised and to be based on the reality of our economy not optimistic or temporary figures that can be made to match unrealistic and reckless political promises.”