Continuing drop in tax take shows need for urgent action
Sinn Féin Finance Spokesperson Arthur Morgan TD has called for urgent action from the Government in response to the continued drop in the tax take.
Speaking today as the Department of Finance released its latest figures Deputy Morgan said:
“With each passing month the crisis in our public finances deepens. The fact that taxes are down €4billion since the beginning of the year highlights the need for urgent tax reform.
“The Minister is due to receive the report of the commission on taxation this month. Unfortunately that report is unlikely to be a blueprint for reforming our tax system. Like the McCarthy report it will primarily be a tool to give the government political cover for the proposals it is seeking to implement. The terms of reference for the Commission on Taxation means that the government will get the report it wants – at the core of the Commission’s work is protecting the structure of the current flawed tax system. As tax revenue plummets the commission on taxation is working within terms of reference that include keeping ‘the overall tax burden low’.
“The collapse in revenue from fair weather taxes has had a devastating impact on the tax take because other taxes were cut to unsustainable levels. Any attempt to get ordinary workers and householders to carry the burden of filling the hole in the tax take will have to be resisted. Taxes will have to be increased on those with the ability to pay – the low levels of taxes on unearned income and wealth will have to be addressed”. ENDS