Tax will take more of gains than budget allowed for - ESRI

Institute finds expected wage rises not factored in

Prof Tim Callan of the  the ESRI found bigger adjustments to the tax system would have been needed to ensure  expected wage inflation did not eat into the value of wage increases. Photograph: Cyril Byrne

Prof Tim Callan of the the ESRI found bigger adjustments to the tax system would have been needed to ensure expected wage inflation did not eat into the value of wage increases. Photograph: Cyril Byrne

The budget did not do enough to adjust the tax and welfare systems for the expected rise in wages next year, an analysis from the Economic and Social Research Institute states.

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