IBEC opposes proposed budget tax hikes



The employers’ group says that implementing the proposed tax increases would not support economic growth.

In its pre-budget submission, published today, IBEC points out that a smaller budget adjustment would signal the end of austerity and would encourage consumer confidence and economic growth.

The next budget is expected to introduce a further €3.1 billion of tax increases and spending cuts to ensure that the Government continues to reduce its borrowings to less than 3% of GDP by 2015.

But the employers’ group argues that - because the deficit reduction plan is already ahead of target - the Government can ease austerity and still achieve this target. It claims that the €500m in extra taxes planned for the budget could be abandoned.

The resulting €2.6 billion adjustment - most of it in spending cuts - would result in a deficit of 4.5% next year - still ahead of the Troika target, IBEC points out.

IBEC argues that Ireland's tax burden is already high enough and says it should actually be reduced in some areas.