ESRI: Inflation-proofing budget would cost up to €1.2bn
Policymakers consider automatically adjusting tax-benefit system in line with inflation
The ESRI has previously said the Government’s decision to hold personal and employee tax credits fixed while wages and prices rise ‘amounted to an effective tax increase for many workers’.
Inflation-proofing tax and welfare changes in the budget would cost the Government an additional €1.2 billion, a new study has indicated.
The research by the Economic and Social Research Institute (ESRI) examined the cost of increasing tax bands, credits and welfare payments in line with inflation, a process known as indexation.