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Tue 09 Sep 2009Third rate of income tax 'has merit' but only if tax on labour remains low

INCOME TAX:A THIRD rate of income tax “has merit” but should “have regard to the need to keep taxation on labour low and marginal rates competitive”, the commission said.

The body said the ceiling on income to which pay related social insurance (PRSI) is applied should be abolished on a phased basis. This measure would increase the amount of PRSI paid by higher-income earners.

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